- Module 32.1: Suppose the economy begins in long-run macroeconomic equilibrium. W...
- Module 32.2: Suppose the economy begins in long-run macroeconomic equilibrium. W...
- Module 32.3: A 10% decrease in the money supply will change the aggregate price ...
- Module 32.4: Monetary neutrality means that, in the long run, changes in the mon...
- Module 32.5: A graph of percentage increases in the money supply and average ann...
Solutions for Chapter Module 32: Money, Output, and Prices in the Long Run
Full solutions for Krugman's Economics for AP® (High School) | 2nd Edition
total revenue minus total explicit cost
the tendency for the mix of unobserved attributes to become undesirable from the standpoint of an uninformed party
average variable cost
variable cost divided by the quantity of output
a strategy that is best for a player in a game regardless of the strategies chosen by the other players
the study of a company’s accounting statements and future prospects to determine its value
the change in consumption that results when a price change moves the consumer to a higher or lower indifference curve
the claim that the government should aim to maximize the well-being of the worst-off person in society
the quantity of money available in the economy
an economy that interacts freely with other economies around the world
the purchase and sale of U.S. government bonds by the Fed
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
the quantity of goods and services produced from each unit of labor input
people who systematically and purposefully do the best they can to achieve their objectives
a dislike of uncertainty
the limited nature of society’s resources
a claim to partial ownership in a firm
the change in consumption that results when a price change moves the consumer along a given indifference curve to a point with a new marginal rate of substitution
a table that shows the relationship between the price of a good and the quantity supplied
the political philosophy according to which the government should choose policies to maximize the total utility of everyone in society