Page 915 - Krugmans Economics for AP Text Book_Neat

INDEX I-5

equilibrium, 422–423 inferior, 54, 460, 476 national accounts, 113 Herfindahl–Hirschman
exchange rate, 419–427 normal, 53, 460, 476 stock market crash, 175–176 Index, 573–574
Foreign exchange reserves, ordinary, 795 Works Progress Herriot, James, 65
430–432 types of, 744 Administration, 212 Hicks, John, 347
Fossil fuel consumption, 392 Government World War II, 177, 346 Hitler, Adolf, 344
Franc, 134, 436 climate change, 393 world-wide influence, 438 Home construction, boom to
France economic growth, 387–389 Greece, national debt, 301 bust, 157, 167
consumer price index, 145 human capital, 388 Greenhouse gas emissions, Hong Kong, exchange rate, 429
economic growth, 369, 382 infrastructure, 387 392–393 Hoover, Herbert, 10
Euro, 134 intervention, 388–389 Greenspan, Alan, 255, 358 Hoovervilles, 10
government spending, tax market failure and, 723 Gross domestic product Horizontal axis, 35
revenue, 202 physical capital, 387–388 (GDP), 106–110 Horizontal curve, slope of, 38
Freddie Mac, 257 political stability, 388–389 calculating, 107, 109 Horizontal intercept, 37
Free entry and exit, 570, 575 price controls, 77–85 components of, 108–109 Horizontal relationship, 37
Free-rider problem, 745 property rights, 388–389 debt-GDP ratio, 301–303 Horizontal sum, 55
Frictional unemployment, quantity controls, 88–93 domestically produced final Household, 103
127–128, 130 technology, 388 goods and services, Housing boom, 157, 169,
Friedman, Milton, 165–166, Government borrowing, 105, 107–108 258–259
333, 347–350, 355 202, 280 double-counting, 107–108 Housing bubble, 258–259,
Frisch, Ragnar, 343 Government budget. See Federal final goods and services, 358–359, 416
Funny money, 221 budget 106–107 Human capital, 222, 680, 712
Future disposable income, 165 Government debt. See also firms in the economy, 108 aggregate production func-
tion, 374–378
Federal debt
G defaulting, 301, 305 GDP deflator, 146, 172–173, East Asia, 380–381
188
Government deficits. See Budget government spending, government, 388
Gains from trade, 23–29, 232 deficit 209–210 growth rates, 386
Game theory, 644 Government policy. See also government spending, tax productivity, 371
prisoner’s dilemma, 644–647 Economic policy; Fiscal revenue, 202 Hyperinflation, 136–137,
repeated interaction, policy; Monetary policy versus gross national product, 325–327
647–649
tacit collusion, 647–649 AD-AS curve, 194 412 I
Gates, Bill, 5, 227 aggregate demand curve, 176 imports, exports, 105–106,
108–109
unemployment rate, 132
GDP. See Gross domestic Government purchases of included/not included, 110 Iceland, monetary neutrality,
product 318
GDP deflator, 146 goods and services, interpreting, 112–116 Illegal activity, price floors, 85
105, 202–203, 205,
measuring, 106–108
aggregate demand, 172–173 209–210 net exports, 108–109 Illiquid, 226
Great Depression, 188 Imperfect competition, 573,
“GDP: One of the Great Government spending, nominal, 114, 116 637
202–205
real, 112–116
Inventions of the 20th GDP, 209–210 versus real GDP, 113 labor market in, 700–704
Century” (Department tax revenue, 202 U.S. per capita, 13 product market in, 700
of Commerce), 113 Imperfect substitutes, 669
United States, 202–204
value added, 107
GDP per capita (Gross Government transfers, 105, Gross domestic product Imperfectly competitive
domestic product per 203–205, 210–211 (GDP) per capita, 115. markets, 180–181
capita), 115 Implicit cost, 530–531
General Motors, jobs, 126–127 Grains, price floors, 82–84 See also Real gross Implicit cost of capital, 532
domestic product per
Graphs
The General Theory of curves, 36–41 capita Implicit liabilities, 303–304
Employment, Interest, numerical, 42–44 Gross national product (GNP), Imports, 105–106, 108–109
and Money (Keynes), perfect competition and, 412 In kind, 137
344–347 Incentives, 2–3
590–596
Germany two-variable graphs, 34–35 Growth. See Economic growth Income
Growth accounting, 376
hyperinflation, 136, 325 variables and economic mod- Growth policy, 385–393 demand curve, 53–54
marc, 436 els, 34 Growth rates, 369–370. See also disposable, 105, 159–166,
real GDP per capita growth Great Depression, 10 Economic growth 204
rate, 382 inequality, 764–768
structural unemployment, aggregate demand curve, 172 differences, 385–389 national (See National
aggregate output, price level,
human capital, 386
132 income)
188
Giffen goods, 459–460 debt deflation, 339 physical capital, 385–386 price determination,
technological progress,
Gini coefficient, 765 deflation, 139 386–387 158–170
Glass-Steagall Act, 256–257 demand shock, 191–192 real, 135, 459
Global savings glut, 416 end of, 177, 346 H redistribution, 771–772
Global warming, 392–393 Federal Reserve System, world-wide, 368
GNP (gross national product), 256–257 “Haircut,” value of debt, 305 Income distribution theories,
412 Hamill Manufacturing, margin- 711–717
Goods. See also Private goods; GDP deflator, 188 al productivity theory Income effect, 459–460
Keynesian Revolution,
Public goods and, 693 Income elasticity of demand,
344–347
artificially scarce, 751–752 multiplier, 161 Hanks, Tom, 16 456–457
characteristics of, 743–744 Hedge fund, 258 Income tax, 202–203