Solutions for Chapter Module 14: Inflation: An Overview

Full solutions for Krugman's Economics for AP® (High School) | 2nd Edition

ISBN: 9781464122187

Solutions for Chapter Module 14: Inflation: An Overview

Krugman's Economics for AP® (High School) was written by and is associated to the ISBN: 9781464122187. This expansive textbook survival guide covers the following chapters and their solutions. Since 5 problems in chapter Module 14: Inflation: An Overview have been answered, more than 2116 students have viewed full step-by-step solutions from this chapter. This textbook survival guide was created for the textbook: Krugman's Economics for AP® (High School), edition: 2. Chapter Module 14: Inflation: An Overview includes 5 full step-by-step solutions.

Key Business Terms and definitions covered in this textbook
  • aggregate-demand curve

    a curve that shows the quantity of goods and services that households, firms, the government, and customers abroad want to buy at each price level

  • average tax rate

    total taxes paid divided by total income

  • collusion

    an agreement among firms in a market about quantities to produce or prices to charge

  • common resources

    goods that are rival in consumption but not excludable

  • consumer price index (CPI)

    a measure of the overall cost of the goods and services bought by a typical consumer

  • diminishing marginal product

    the property whereby the marginal product of an input declines as the quantity of the input increases

  • discouraged workers

    individuals who would like to work but have given up looking for a job

  • efficiency

    the property of society getting the most it can from its scarce resources

  • equilibrium

    a situation in which the market price has reached the level at which quantity supplied equals quantity demanded

  • Fisher effect

    the one-for-one adjustment of the nominal interest rate to the inflation rate

  • fractional-reserve banking

    a banking system in which banks hold only a fraction of deposits as reserves

  • in-kind transfers

    transfers to the poor given in the form of goods and services rather than cash

  • law of supply and demand

    the claim that the price of any good adjusts to bring the quantity supplied and the quantity demanded for that good into balance

  • marginal change

    a small incremental adjustment to a plan of action

  • marginal revenue

    the change in total revenue from an additional unit sold

  • negative income tax

    a tax system that collects revenue from high-income households and gives subsidies to lowincome households

  • purchasing-power parity

    a theory of exchange rates whereby a unit of any given currency should be able to buy the same quantity of goods in all countries

  • rational people

    people who systematically and purposefully do the best they can to achieve their objectives

  • stagflation

    a period of falling output and rising prices

  • tax incidence

    the manner in which the burden of a tax is shared among participants in a market

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