- Section 4.1: Which of the following will occur if the federal government reduces...
- Section 4.2: Which of the following will occur if an increase in interest rates ...
- Section 4.3: Which of the following will occur as a result of an increase in the...
- Section 4.4: Which of the following will occur if the price of steel decreases a...
- Section 4.5: Sticky nominal wages in the short run cause the shortrun aggregate ...
- Section 4.6: As a result of the wealth effect, a higher aggregate price level wi...
- Section 4.7: The interest rate effect of a decrease in the aggregate price level...
- Section 4.8: Which of the following types of shocks poses a policy dilemma due t...
- Section 4.9: A higher aggregate price level leads to higher profit per unit of o...
- Section 4.10: If potential output is equal to actual aggregate output, which of t...
- Section 4.11: Which of the following is true about the long-run aggregate supply ...
- Section 4.12: Short-run equilibrium aggregate output is the quantity of aggregate...
- Section 4.13: The collapse of wealth and business and consumer confidence that ca...
- Section 4.14: Which of the following is an example of a positive demand shock? a....
- Section 4.15: A positive supply shock will lead to which of the following? a. sta...
- Section 4.16: Which of the following is an example of a negative supply shock? a....
- Section 4.17: Which of the following is true when the economy is experiencing a r...
- Section 4.18: When the economy is experiencing an inflationary gap, the output ga...
- Section 4.19: Which of the following leads to self-correction when the economy is...
- Section 4.20: Which type of policy can be used to address a decrease in aggregate...
- Section 4.21: If the marginal propensity to consume is equal to 0.80, the spendin...
- Section 4.22: If the marginal propensity to consume is 0.75, an initial increase ...
- Section 4.23: If the marginal propensity to consume is 0.9, every $10 billion inc...
- Section 4.24: Compared to an increase in taxes, an equal-sized increase in govern...
- Section 4.25: Which of the following is an example of an automatic stabilizer? a....
Solutions for Chapter Section 4: National Income and Price Determination
Full solutions for Krugman's Economics for AP® (High School) | 2nd Edition
average tax rate
total taxes paid divided by total income
a difference in wages that arises to offset the nonmonetary characteristics of different jobs
the deviation of unemployment from its natural rate
a measure of the responsiveness of quantity demanded or quantity supplied to a change in one of its determinants
a situation in which the market price has reached the level at which quantity supplied equals quantity demanded
the property of a good whereby a person can be prevented from using it
the uncompensated impact of one person’s actions on the well-being of a bystander
the setting of the level of government spending and taxation by government policymakers
a banking system in which banks hold only a fraction of deposits as reserves
the increase in total cost that arises from an extra unit of production
the change in total revenue from an additional unit sold
a situation in which a market left on its own fails to allocate resources efficiently
medium of exchange
an item that buyers give to sellers when they want to purchase goods and services
a monopoly that arises because a single firm can supply a good or service to an entire market at a smaller cost than could two or more firms
spending on domestically produced goods by foreigners (exports) minus spending on foreign goods by domestic residents (imports)
claims that attempt to prescribe how the world should be
claims that attempt to describe the world as it is
tax on goods produced abroad and sold domestically
a worker association that bargains with employers over wages, benefits, and working conditions
willingness to pay
the maximum amount that a buyer will pay for a good