- 12.1: What does the level of a nations GDP measure?What does the growth r...
- 12.2: List and describe four determinants ofproductivity.
- 12.3: In what way is a college degree a form of capital?
- 12.4: Explain how higher saving leads to a higherstandard of living. What...
- 12.5: Does a higher rate of saving lead to highergrowth temporarily or in...
- 12.6: Why would removing a trade restriction,such as a tariff, lead to mo...
- 12.7: How does the rate of population growthinfluence the level of GDP pe...
- 12.8: Describe two ways the U.S. governmenttries to encourage advances in...
- 12.9: International data show a positive correlationbetween political sta...
- 12.10: From 1950 to 2000, manufacturing employmentas a percentage of total...
Solutions for Chapter 12: Production and Growth
Full solutions for Principles of Macroeconomics | 6th Edition
average variable cost
variable cost divided by the quantity of output
goods that are excludable but not rival in consumption
the process by which unions and firms agree on the terms of employment
cross-price elasticity of demand
a measure of how much the quantity demanded of one good responds to a change in the price of another good, computed as the percentage change in quantity demanded of the first good divided by the percentage change in price of the second good
diseconomies of scale
the property whereby long-run average total cost rises as the quantity of output increases
a measure of the responsiveness of quantity demanded or quantity supplied to a change in one of its determinants
the one-for-one adjustment of the nominal interest rate to the inflation rate
a good for which, other things being equal, an increase in income leads to a decrease in demand
internalizing the externality
altering incentives so that people take account of the external effects of their actions
market for loanable funds
the market in which those who want to save supply funds and those who want to borrow to invest demand funds
natural level of output
the production of goods and services that an economy achieves in the long run when unemployment is at its normal rate
variables measured in monetary units
a good for which, other things being equal, an increase in income leads to an increase in demand
a legal maximum on the price at which a good can be sold
the income that households have left after paying for taxes and consumption
total revenue minus total cost
a dislike of uncertainty
the organized withdrawal of labor from a firm by a union
an excess of imports over exports
unit of account
the yardstick people use to post prices and record debts