Page 912 - Krugmans Economics for AP Text Book_Neat

I-2 INDEX

Britain (continued) Capital requirements, 246 supply and demand, 47, aggregate consumption
capital flows, 415, 417 Carbon dioxide emissions, 71–74 function, 164–166
congestion charge, 57 392–393 supply curve, 59–64 autonomous, 162–164
loanable funds market, 414 Cartel, 639 COLAs (cost-of-living consumption function,
pound, 435, 439 Cash, 231, 235, 247–248. See allowances), 147 162–164
real GDP per capita growth also Money Collective bargaining, 129 current disposable income,
rate, 382 Causal relationship, 35 College tuition, price elasticity 161–164
Brookings Institution, 374 CBO (Congressional Budget of demand and, 473 fluctuations, 167
Brooks, Diana, 655 Office), 131, 185, 328, Collins, Susan, 374 Great Depression, 161
Bryan, William Jennings, 138 338 Collusion, 639, 640–641 Consumer surplus, 482, 485
Budget balance, 223, 296–300 CD (certificate of deposit), Command economy, 2 changes in trade quantity,
budget deficit, 296–300 268–271 Commercial banks, 257, 498–499
cyclically adjusted, 297–299 Central bank, 253, 310. See 264–265 changing prices and,
fiscal policy, 296–297 also Federal Reserve Commodity, 182, 569 486–488
Budget constraint, 514–515 Bank of England, 253, 358 Commodity money, 233 equity and efficiency, 499
Budget deficit, 223, 296–305 Bank of Japan, 253, 341, 359 Commodity prices, SRAS, gains from trade and,
actual versus cyclically European Central Bank 182–183 495–496
adjusted, 299 (ECB), 253 Commodity-backed money, market efficiency and,
government, 280–281 monetary policy, 315–316, 233 496–499
implicit liabilities, 303–304 318 Common resources, 749 reallocation of consumption,
in practice, 301–303 targets, 358 efficient use of, 750–751 496–497
unemployment rate, 298 Certificate of deposit (CD), overuse of, 749–750 reallocation of sales, 497–498
Budget line, 514–515 268–271 Comparative advantage, 24–29 taxation costs and, 506–507
Budget surplus, 223, 296–301 Ceteris paribus. See Other things gains from trade, 26 willingness to pay, and,
Bureau of Economic Analysis, equal assumption international trade, 28–29 483–486
102 Chained dollars, 115 Compensating differentials, Consumers, demand curve,
Bureau of Labor Statistics Chain-linking, 115 711–712 55–56
(BLS), 120, 147, 161 Change in demand, 51 Competition Consumption bundle, 142, 512
Business cycle, 10–13 Change in supply, 60 antitrust policy, 754–755 Consumption function,
aggregate output, 12 Checkable bank deposit, 231, Clayton Antitrust Act of 162–164
classical macroeconomics, 344 247–248. See also Bank 1914, 755–756 Consumption possibilities,
cyclically adjusted budget deposit Federal Trade Commission 514–515
balance, 297–299 Chile, economic growth, 381 Act of 1914, 756 Contractionary fiscal policy,
international, 438 China natural monopoly and, 204–206, 209
long-run economic growth, carbon dioxide emissions, 756–758 Contractionary monetary
400 392 promotion of, 754 policy, 310, 313
unemployment, 11–12 economic growth, 365, 367, Sherman Antitrust Act of Convergence hypothesis,
Butter, price floors, 82–83 369, 374, 385 1890, 755 381–382
C exchange rate, 425, 432 Competition among sellers, 669 Copyright, 572
Competitive market, 48,
Nike factories, 416
Core inflation rate, 337
pollution, 390 180–181 Cost
Cable television, natural Chiron Corporation, 457 Complements, 53, 57 concept and measures, 564
monopoly and, 621
Canada Cigarette exchange, 14, in factor markets, 706–707 producer surplus and,
489–492
in production, 63
232–233
aircraft exports, 28–29 Circular-flow diagram, 102–106 Conditional convergence, 282 Cost curves, 548–550
exchange rate, 426, 431–432 expanded, 103–106 Congestion charge, 57 Cost minimization, 707–708
government spending, tax simple, 102–103 Congressional Budget Office Cost-minimization rule,
revenue, 202
708–709
monetary neutrality, 318 Citizens’ Bank of Louisiana, (CBO), 131, 185, 328, Cost-of-living allowances
338
234
natural resources, 378
(COLAs), 147
Cap and trade system, 393, 736 Clam licenses, quantity Constant opportunity cost, 19 Cost-push inflation, 327
Constant returns to scale, 563
controls, 92
Capital, 3 Classic model of the price Consumer choice, indifference Counterfeit money, 221, 234,
Capital account. See Financial level, 322–323 curves and, 791–792 265
account
Capital flows Classical macroeconomics, budget line, slope of, CPI (consumer price index),
343–344, 355–357
143–147, 337
796–797
balance of payments, Clayton Antitrust Act of 1914, marginal rate of substitution, Cramer, Jim, 295, 309
408–413
792–795
755–756
financial account, 411–414 Climate change, economic preferences, choices and, Cross-price elasticity of
demand, 475–476
golden age, 417 growth and, 392–393 799–800 Crowding out, 281, 300
international, determinants, Climate protection, cost of, 393 prices, marginal rate of sub- Currency, 231, 235, 243. See
415–417
also Money
stitution and, 797–799
net, gross, 416 Club of Rome, 389 tangency condition, 795–796 Currency in circulation, 231
The Coal Question (Jevons), 391
two-way, 416
Capital inflow, 223–224 Coase theorem, 728 Consumer price index (CPI), Current account, 410–413,
436
143–147, 337
Coffee
exchange rate, 422–423 demand curve, 49–56 Consumer spending, 103, Current disposable income,
loanable funds, 281, market equilibrium, 66–69 161–167 161–164
413–415