- Module 14.1: The widespread use of technology has revolutionized the banking ind...
- Module 14.2: Most people in the United States have grown accustomed to a modest ...
- Module 14.3: If inflation causes people to frequently convert their dollars into...
- Module 14.4: Because dollars are used as the basis for contracts, inflation lead...
- Module 14.5: Changing the listed price when inflation leads to a price increase ...
Solutions for Chapter Module 14: Inflation: An Overview
Full solutions for Krugman's Economics for AP® (High School) | 2nd Edition
the equipment and structures used to produce goods and services
a large and sudden reduction in the demand for assets located in a country
the theoretical separation of nominal and real variables
an economy that does not interact with other economies in the world
the process by which unions and firms agree on the terms of employment
constant returns to scale
The property whereby long-run average total cost stays the same as the quantity of output changes
the interest rate on the loans that the Fed makes to banks
the price that balances quantity supplied and quantity demanded
goods produced domestically and sold abroad
a person who receives the benefit of a good but avoids paying for it
a curve that shows consumption bundles that give the consumer the same level of satisfaction
an increase in the overall level of prices in the economy
law of supply
the claim that, other things being equal, the quantity supplied of a good rises when the price of the good rises
a tax that is the same amount for every person
a group of buyers and sellers of a particular good or service
the proposition that changes in the money supply do not affect real variables
the amount of money the banking system generates with each dollar of reserves
negative income tax
a tax system that collects revenue from high-income households and gives subsidies to lowincome households
an absolute level of income set by the federal government for each family size below which a family is deemed to be in poverty
quantity theory of money
a theory asserting that the quantity of money available determines the price level and that the growth rate in the quantity of money available determines the inflation rate