- Module 35.1: The figure below shows the behavior of M1 before, during, and after...
- Module 35.2: What would the figure in Question 1 have looked like if the Fed had...
- Module 35.3: Now look at Figure 35.3, which shows the path of the velocity of mo...
- Module 35.4: In addition to praising aggressive monetary policy, the 2004 Econom...
- Module 35.5: In early 2001, as it became clear that the United States was experi...
Solutions for Chapter Module 35: History and Alternative Views of Macroeconomics
Full solutions for Krugman's Economics for AP® (High School) | 2nd Edition
the ability to produce a good using fewer inputs than another producer
average tax rate
total taxes paid divided by total income
an excess of tax revenue over government spending
goods that are excludable but not rival in consumption
the value of everything a seller must give up to produce a good
the property whereby the benefit from an extra unit of an input declines as the quantity of the input increases
the reduction of risk achieved by replacing a single risk with a large number of smaller, unrelated risks
the property of distributing economic prosperity uniformly among the members of society
the price that balances quantity supplied and quantity demanded
the idea that taxpayers with similar abilities to pay taxes should pay the same amount
the knowledge and skills that workers acquire through education, training, and experience
the political philosophy according to which the government should punish crimes and enforce voluntary agreements but not redistribute income
median voter theorem
a mathematical result showing that if voters are choosing a point along a line and each voter wants the point closest to his most preferred point, then majority rule will pick the most preferred point of the median voter
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
the percentage of the population whose family income falls below an absolute level called the poverty line
a legal maximum on the price at which a good can be sold
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
real exchange rate
the rate at which a person can trade the goods and services of one country for the goods and services of another
a graph of the relationship between the price of a good and the quantity supplied