- 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
an excess of government receipts over government spending
diminishing marginal product
the property whereby the marginal product of an input declines as the quantity of the input increases
the offering of different opportunities to similar individuals who differ only by race, ethnic group, sex, age, or other personal characteristics
the quantity of output that minimizes average total cost
the property of distributing economic prosperity uniformly among the members of society
a person who receives the benefit of a good but avoids paying for it
the study of a company’s accounting statements and future prospects to determine its value
the revenue the government raises by creating money
the process by which workers find appropriate jobs given their tastes and skills
the change in total revenue from an additional unit sold
marginal tax rate
the amount that taxes increase from an additional dollar of income
the costs of changing prices
a good for which, other things being equal, an increase in
the purchase and sale of U.S. government bonds by the Fed
the amount a seller is paid for a good minus the seller’s cost of providing it
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
the production of goods and services valued at constant prices
a graph of the relationship between the price of a good and the quantity supplied
a table that shows the relationship between the price of a good and the quantity supplied
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