Page 911 - Krugmans Economics for AP Text Book_Neat

Index

A short-run equilibrium, Arab-Israeli war, 197 Balance of payments on the
current account,
Archer Daniels Midland
190–193
Absolute advantage, 27 Aggregate price level, (ADM), 637 410–413, 436
Absolute value, 40 142–143, 146 Argentina Balance of payments on the
Accounting profit, 531–533, aggregate demand curve, bank runs, 245 financial account,
539, 586 172–175, 177 debt defaulting, 301, 305 411–414
Actual investment spending, aggregate supply curve, economic growth, 369, Balance sheet effect, 258
169 179–188 379–381 Bangladesh, clothing
Actual output, 185–186, 397 change in, wealth/interest fixed exchange rate, 432, production, 27
AD-AS model, 190–197 rate effects, 174 435 Bank deposit, 224, 229,
classic model of the price Great Depression, 188 natural resources, 378 248–249. See also
level, 322 long-run equilibrium, Arms race, prisoners’ dilemma Checkable bank deposit
demand shock, 191–197 194–196 and, 649 Bank failure, 245
economic policy, 199–207 money demand curve, Artificially scarce goods, Bank holidays, 256
inflation, 327 271–272 751–752 Bank of England, 253, 358
long-run economic growth, money supply, 316–317, 322 Assets Bank of Japan, 253, 341, 359
399–400 short-run equilibrium, banks, 244 Bank reserves, 243
long-run macroeconomic 190–193 Federal Reserve, 264–265 Bank run, 243, 245–246,
equilibrium, 194–196 Aggregate production financial, 224, 226–227 253–254
short-run macroeconomic function, 374–378 physical, 224 Banking system, 253–260
equilibrium, 190–191 Aggregate spending, 106 prices, macroeconomic Banks, 228–229. See also
supply shock, 192–194, 197 Aggregate supply curve, policy, 358–359 Federal Reserve
ADM (Archer Daniels 179–187 ATC (average total cost curve), assets, liabilities, 244
Midland), 637 AD-AS model, 190–196 553–554 central, 253, 310, 315–316,
Administrative costs, 508 long-run, 184–187 ATMs, money demand curve 318, 358
Advance purchase restrictions, short-run, 179–184 and, 272–273 commercial, 257, 264–265
627 Aggregate wealth, 166 Australia crises, 254–255
Adverse selection, 782–784 Agricultural price floors, 82–84 monetary neutrality, 318 Federal Reserve System,
Advertising, product differentia- Air Sunshine, 624–625 natural resources, 378 262–266
tion and Airline industry Automatic stabilizers, 161, investment, 257
brand names, 671–672 oligopoly and, 641–642 212, 298 monetary role, 243–251
location differentiation, 669 price discrimination, Automobile industry money creation, 247–248
quality differentiation, 624–627 exchange rate and, 427 regulation, 246–247
669–670 regulation, 85 inventories, 168, 170 Bar graph, 44
role of, 670–671 Allen, Paul, 227 Autonomous change in Barrier to entry, 571
style, type differentiation, Alternative input combinations, aggregate spending, Barter system, 232
668–669 706–707 160, 209 Belgium, minimum wage, 84
Africa, economic growth, American Economic Autonomous consumer Bernanke, Ben, 201, 295, 416
381–383 Association, 1 spending, 162–164 Bertrand, Joseph, 641
Aggregate consumption American Economic Review, 8, AVC (average variable cost Bertrand, Marianne, 715
function, 164–166 715 curve), 554 Bertrand model, 641
Aggregate demand curve, American Recovery and Average cost, 552–555, 564 Big Mac index, 425–426
172–177 Reinvestment Act, 209, Average cost pricing, 757 Black labor, 85
AD-AS model, 190–196 213 Average fixed cost, 553, 564 Black markets, 81
downward slope, 173–174 Amtrak, monopolies and, 614 Average revenue, 586 BLS (Bureau of Labor
fiscal policy, 209 Antipoverty programs, United Average total cost curve (ATC), Statistics), 120, 147, 161
monetary policy, 309–310 States, 768 553–554 Board of Governors, 255
movement along, 174 effects of, 770–771 Average variable cost, 553, Bond, 104, 224, 226, 270
shifts of, 174–177, 444 means-tested, 769 564 Bonus foods, 84
Aggregate demand-aggregate social security, 769 Average variable cost curve Bosworth, Barry, 374
supply model. See unemployment insurance, (AVC), 554 Boxer, Barbara, 393
AD-AS model 769 Brand names, 671–672
Aggregate output, 12, Antitrust policy, 653, B Brazil
112–115 754–755 agricultural boom, 388
actual, 186 Clayton Antitrust Act of Bailey, George, 245 coffee beans, 47, 59, 64
Balance of payments
aggregate demand curve, 1914, 755–756 capital flows, 408–413 economic growth, 381
172–173, 175 Federal Trade Commission hyperinflation, 136–137
aggregate supply curve, 179, Act of 1914, 756 exchange rate, 419, 421–423 Brazilian Enterprise for
merchandise trade, 410–411
181–188 natural monopoly and, Agricultural and
Great Depression, 188 756–758 Balance of payments Livestock Research, 388
accounts, 408–413
money supply increase, Sherman Antitrust Act of Balance of payments on Break-even price, 592
316–317 1890, 755 Bretton Woods, 435–436
output gap, 196 Apartheid, economics of, 715 goods and services, Britain
410
recessionary gap, 195 Appreciates, 420–424 Bank of England, 253, 358
I-1