Page 14 - Krugmans Economics for AP Text Book_Neat

Contents

So Why Are There Price Ceilings? 81 Module 13 The Causes and Categories of
Price Floors 82 Unemployment 126
FYI: Price Floors and School Lunches 84 The Natural Rate of Unemployment 126
How a Price Floor Causes Inefficiency 84 Job Creation and Job Destruction 126
So Why Are There Price Floors? 85 Frictional Unemployment 127
Module 8 AP Review 86 Structural Unemployment 128
The Natural Rate of Unemployment 130
Module 9 Supply and Demand: Quality Controls 88 Changes in the Natural Rate of Unemployment 130
Controlling Quantities 88 FYI: Structural Unemployment in Eastern Germany 132
The Anatomy of Quantity Controls 89 Module 13 AP Review 132
The Costs of Quantity Controls 92
FYI: The Clams of New Jersey 92 Module 14 Inflation: An Overview 134
Module 9 AP Review 93 Inflation and Deflation 134
Section 2 Review 94 The Level of Prices Doesn’t Matter … 134
… But the Rate of Change of Prices Does 135
Section 3 FYI: Israel’s Experience with Inflation 136
Measurement of Economic Performance 101 Winners and Losers from Inflation 138
Inflation is Easy; Disinflation is Hard 139
Module 10 The Circular Flow and Gross Module 14 AP Review 140
Domestic Product 102
The National Accounts 102 Module 15 The Measurement and Calculation
The Circular-Flow Diagram 102 of Inflation 142
Gross Domestic Product 106 Prices Indexes and the Aggregate Price Level 142
Module 10 AP Review 110 Market Baskets and Price Indexes 142
The Consumer Price Index 144
Module 11 Interpreting Real Gross Domestic Other Price Measures 145
Product 112 FYI: Indexing to the CPI 147
What GDP Tells Us 112 Module 15 AP Review 147
Real GDP: A Measure of Aggregate Output 112 Section 3 Review 148
FYI: Creating the National Accounts 113
Calculating Real GDP 113 Section 4
What Real GDP Doesn’t Measure 115 National Income and Price Determination 157
FYI: Miracle in Venezuela? 116
Module 11 AP Review 116 Module 16 Income and Expenditure 158
The Multiplier: An Informal Introduction 158
Module 12 The Meaning and Calculation of FYI: The Multiplier and the Great Depression 161
Unemployment 118
Consumer Spending 161
The Unemployment Rate 118
Current Disposable Income and Consumer Spending 161
Defining and Measuring Unemployment 119
Shifts of the Aggregate Consumption Function 165
The Significance of the Unemployment Rate 119
Investment Spending 166
Growth and Unemployment 122
The Interest Rate and Investment Spending 167
FYI: Rocky Mountain Low 124
Expected Future Real GDP, Production Capacity, and
Module 12 AP Review 124 Investment Spending 168

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