Solutions for Chapter Module 36: Consensus and Conflict in Modern Macroeconomics

Full solutions for Krugman's Economics for AP® (High School) | 2nd Edition

ISBN: 9781464122187

Solutions for Chapter Module 36: Consensus and Conflict in Modern Macroeconomics

Chapter Module 36: Consensus and Conflict in Modern Macroeconomics includes 5 full step-by-step solutions. This expansive textbook survival guide covers the following chapters and their solutions. Since 5 problems in chapter Module 36: Consensus and Conflict in Modern Macroeconomics have been answered, more than 3301 students have viewed full step-by-step solutions from this chapter. This textbook survival guide was created for the textbook: Krugman's Economics for AP® (High School), edition: 2. Krugman's Economics for AP® (High School) was written by and is associated to the ISBN: 9781464122187.

Key Business Terms and definitions covered in this textbook
  • budget surplus

    an excess of government receipts over government spending

  • capital fligh

    a large and sudden reduction in the demand for assets located in a country

  • commodity money

    money that takes the form of a commodity with intrinsic value

  • Condorcet paradox

    the failure of majority rule to produce transitive preferences for society

  • cost

    the value of everything a seller must give up to produce a good

  • equilibrium quantity

    the quantity supplied and the quantity demanded at the equilibrium price

  • imports

    goods produced abroad and sold domestically

  • inflation

    an increase in the overall level of prices in the economy

  • lump-sum tax

    a tax that is the same amount for every person

  • monopoly

    a firm that is the sole seller of a product without close substitutes

  • multiplier effect

    the additional shifts in aggregate demand that result when expansionary fiscal policy increases income and thereby increases consumer spending

  • poverty line

    an absolute level of income set by the federal government for each family size below which a family is deemed to be in poverty

  • poverty rate

    the percentage of the population whose family income falls below an absolute level called the poverty line

  • production possibilities frontier

    a graph that shows the combinations of output that the economy can possibly produce given the available factors of production and the available production technology

  • substitutes

    two goods for which an increase in the price of one leads to an increase in the demand for the other

  • supply shock

    an event that directly alters firms’ costs and prices, shifting the economy’s aggregate supply curve and thus the Phillips curve

  • surplus

    a situation in which quantity supplied is greater than quantity demanded

  • theory of liquidity preference

    Keynes’s theory that the interest rate adjusts to bring money supply and money demand into balance

  • transaction costs

    the costs that parties incur in the process of agreeing to and following through on a bargain

  • variable costs

    costs that vary with the quantity of output produced

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