Page 916 - Krugmans Economics for AP Text Book_Neat

I-6 INDEX

Income-elastic, 476 hyperinflation, 136–137, investment spending, savings, 222–224
Income-inelastic, 476 325–327 167–168 unplanned, 168–170
Increase in demand, 51 inflation tax, 324–325 loanable funds, 277–286 Ireland
Increase in supply, 61 interest rates, 138–139 long run determination, economic growth, 369
Increasing opportunity cost, 19 Israel, 136–137 285–286 Giffen goods and, 459
Increasing returns to scale, level of prices, 134–138 long-term, 270 infrastructure, 387
562 loanable funds, 282–284 monetary policy, Federal Israel, inflation, 136–137
Independent variable, 35–36, long-run Phillips curve, Reserve, 307–313 Italy, economic growth, 382
460 335–336 money, 273–275 It’s a Wonderful Life, 245
Indexing to CPI, 147 measurement, calculation, money demand curve,
India 143–147 270–273 J
economic growth, 367–369, menu costs, 136–137 money supply changes, Jackpots, present value and, 241
374, 389 monetary policy, 310–313 317–319
monetary neutrality, 318 money, 321–327 opportunity cost, holding Japan
Indifference curves, 787–790 nonaccelerating inflation money, 268–270 Bank of Japan, 253, 341, 359
consumer price index, 145
budget line, slope of, rate of unemployment, short run determination, deficit, debt, 300, 302–303
796–797 336–337 284–285
consumer choice and, output gap, unemployment short-term, 268–270 economic growth, 365, 385
government spending, tax
791–792 rate, 328–329 U.S. housing boom, 169
revenue, 202
marginal rate of substitution, Portugal, 101, 112 Interest rate effect of a Lost Decade, 340–341
792–795 price indexes, 143–147 change in the aggre-
preferences, choices and, producer price index, 143, gate price level, 174 monetary neutrality, 318
natural resources, 378
799–800 145–146 Interest rate models
prices, marginal rate of sub- real exchange rate, 423–425 comparing, 284–286 private savings, 415
public works projects, 177
stitution and, 797–799 shoe-leather costs, 136–137 liquidity preference,
properties of, 790–791 short-run Phillips curve, 273–274, 284–286 real GDP per capita growth
rate, 382
tangency condition, 795–796 331–335 loanable funds, 277–286
Individual choice, 2 stagflation, 193, 334 long run determination, Jevons, William Stanley, 391
Job search, 127
Individual consumer surplus, targeting, 312 285–286 Jobs, unemployment, 126–127
485 unit-of-account costs, short run determination,
Individual demand curve, 137–138 284–285 Johnson, Lyndon, 205, 209
Joseph, Marc, 157
55–56 Venezuela, 116 Intermediate goods and serv-
Individual labor supply winners/losers, 138–139 ices, 106–107 K
curve, 696–697 Zimbabwe, 137, 321, Internalize the externalities,
Individual producer surplus, 323–324, 326 728 Keynes, John Maynard, 199,
490 Inflation rate, 135–139 International business cycle, 317, 322, 343–351
Individual supply curve, core, 337 438 Keynesian economics, 199,
63–64 versus level of price, 135 International capital flows, 344–351, 355–357
Industry supply curve, 599 United States, 135–139 415–417 challenges to, 347–351
long-run, 601–605 Inflation targeting, 312 International finance. See Open Great Depression, 344–347
long-run equilibrium, cost Inflation tax, 324–325 economy Keynesian Revolution,
of, 605 Inflationary gap, 196 International Monetary Fund, 344–347
short-run, 599–601 contractionary fiscal policy, 351 new, 352, 356
IndyMac, 245 206 International trade. See also Kidney transplant, consumer
Inefficient allocation of sales unemployment rate, 328 Open economy surplus and, 488
among sellers, 84 Inflows, 223. See also Capital comparative advantage, Korea, monetary neutrality, 318
Inefficient allocation to inflow 28–29 Kuwait, natural resources, 378
consumers, 80 Information, economics of exports/imports, 105 Kuznets, Simon, 113
Inefficient, in production, 18 adverse selection, 782–784 International transfers, Kydland, Finn, 353
Inefficiently high quality, 85 moral hazard, 784–785 409–410, 412
Inefficiently low consumption, private information, 782 Inventories, 105–106, L
745 Information technology, 379 168–170
Inefficiently low production, Infrastructure, 387 Inventory investment, Labor, 3, 680
Labor force, 12, 119, 131
745 In-kind benefit, 768 168–170
Inefficiently low quality, 81 Input, 62–63 Investment banks, 257 Labor force participation
rate, 119
Inefficiently low quantity, 84 alternative combinations, Investment spending, 106, Labor market, 103, 128. See also
Inelastic, 467–472 706–707 157–160 Labor supply
Inferior good, 54, 460, 476 cost minimization, 707–709 capital flows, 413, 415–416 equilibrium in, 698–704
Inflation, 12–13, 134–139 GDP and, 106–108, 110 economic growth, 386 imperfect competition and,
consumer price index, Interdependence, 638 fluctuations, 167 703–704
143–147 Interest rate, 222 Great Depression, 161
cost-push, 327 CDs, 268–271 interest rate, 167–168 perfect competition and,
700–703
demand-pull, 327 equilibrium, 273–274, inventories, 168–170 product market, perfect com-
disinflation, 139 277–280 planned, 166–167 petition and, 700
expected, 333–336 Fisher effect, 283 production capacity, 168 Labor market institutions, 131
GDP deflator, 146 inflation, 138–139 real GDP, 168
Labor productivity, 370–371