- 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
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
an agreement among firms in a market about quantities to produce or prices to charge
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
individuals who would like to work but have given up looking for a job
the property of society getting the most it can from its scarce resources
a situation in which the market price has reached the level at which quantity supplied equals quantity demanded
the one-for-one adjustment of the nominal interest rate to the inflation rate
a banking system in which banks hold only a fraction of deposits as reserves
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
a small incremental adjustment to a plan of action
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
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
people who systematically and purposefully do the best they can to achieve their objectives
a period of falling output and rising prices
the manner in which the burden of a tax is shared among participants in a market
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