- Module 34 .1: Explain how the short - run Phillips curve illustrates the negative...
- Module 34 .2: Why is there no long - run trade - off between unemployment and inf...
- Module 34 .3: Why is disinflation so costly for an economy? Are there ways to red...
- Module 34 .4: Why wont anyone lend money at a negative nominal rate of interest? ...
- Module 34 .5: Debt deflation is a. the effect of deflation in decreasing aggregat...
Solutions for Chapter Module 34 : Inflation and Unemployment: The Phillips Curve
Full solutions for Krugman's Economics for AP* | 2nd Edition
the idea that people should pay taxes based on the benefits they receive from government services
fluctuations in economic activity, such as employment and production
the proposition that if private parties can bargain without cost over the allocation of resources, they can solve the problem of externalities on their own
constant returns to scale
The property whereby long-run average total cost stays the same as the quantity of output changes
a study that compares the costs and benefits to society of providing a public good
total revenue minus total cost, including both explicit and implicit costs
economies of scale
the property whereby long-run average total cost falls as the quantity of output increases
efficient markets hypothesis
the theory that asset prices reflect all publicly available information about the value of an asset
the quantity of output that minimizes average total cost
a person who receives the benefit of a good but avoids paying for it
the study of a company’s accounting statements and future prospects to determine its value
the description of asset prices that rationally reflect all available information
a small incremental adjustment to a plan of action
an economy that allocates resources through the decentralized decisions of many firms and households as they interact in markets for goods and services
isk that affects all companies in the stock market
the business practice of selling the same good at different prices to different customers
the amount a seller is paid for a good minus the seller’s cost of providing it
goods that are neither excludable nor rival in consumption
rivalry in consumption
the property of a good whereby one person’s use diminishes other people’s use
the price of a good that prevails in the world market for that good