- Module 17.1: Determine the effect on aggregate demand of each of the following e...
- Module 17.2: Which of the following will shift the aggregate demand curve to the...
- Module 17.3: The Consumer Confidence Index is used to measure which of the follo...
- Module 17.4: Decreases in the stock market decrease aggregate demand by decreasi...
- Module 17.5: Which of the following government policies will shift the aggregate...
Solutions for Chapter Module 17: Aggregate Demand: Introduction and Determinants
Full solutions for Krugman's Economics for AP® (High School) | 2nd Edition
the idea that people should pay taxes based on the benefits they receive from government services
a certificate of indebtedness
an agreement among firms in a market about quantities to produce or prices to charge
goods that are rival in consumption but not excludable
the idea that taxpayers with similar abilities to pay taxes should pay the same amount
income elasticity of demand
a measure of how much the quantity demanded of a good responds to a change in consumers’ income, computed as the percentage change in quantity demanded divided by the percentage change in income
internalizing the externality
altering incentives so that people take account of the external effects of their actions
a small incremental adjustment to a plan of action
a situation in which a market left on its own fails to allocate resources efficiently
the ability of a single economic actor (or small group of actors) to have a substantial influence on market prices
the claim that the government should aim to maximize the well-being of the worst-off person in society
a firm that is the sole seller of a product without close substitutes
claims that attempt to describe the world as it is
price elasticity of demand
a measure of how much the quantity demanded of a good responds to a change in the price of that good, computed as the percentage change in quantity demanded divided by the percentage change in price
goods that are both excludable and rival in consumption
a dislike of uncertainty
the market value of the inputs a firm uses in production
total revenue (in a market)
the amount paid by buyers and received by sellers of a good, computed as the price of the good times the quantity sold
the political philosophy according to which the government should choose policies to maximize the total utility of everyone in society
government programs that supplement the incomes of the needy welfare economics the study of how the allocation of resources affects economic well-being