Page 918 - Krugmans Economics for AP Text Book_Neat

I-8 INDEX

McKinsey and Co., 370 inflation, 310–313 efficiency of, 665 MPC, MPS, 159–160
MD (money demand curve), interest rate, 307–313, in long run, 661–663 stimulus package, 213
270–273, 444 317–319 versus perfect competition, taxes, 210–212
Mean household income, 765 macroeconomic theories, 663–665 Muth, John, 352
Means-tested, 768 355–359 in short run, 659–661 Mutual fund, 228
Means-tested programs, monetarism, 348–350 Monopoly, 570, 614–615. See
antipoverty, 768–769 monetary neutrality, 317–319 also Natural monopoly N
Medallions, taxicabs, quantity money supply, 316–319 definition of, 571 NAIRU (nonaccelerating
controls, 88–93 output, prices, 315 demand curve, marginal rev-
Median household income, in practice, 310–313 enue and, 608–612 inflation rate of
unemployment),
765 recessions, 355–356 economies of scale, 571
336–337
Medicaid, 203–204, 303–304 revival of, 347–348 government-created barriers Nash equilibrium, 646
Medicare, 203–204, 303–304 unconventional, 359 and, 572 Nash, John Forbes, 646
Medium of exchange, 232 unemployment reduction, versus perfect competition, National accounts, 102–110
Med-Stat, 457 356 613–614 circular-flow diagram,
Mega Millions, 241 “Monetary Policy Matters” power, prevention of, 102–106
Menu costs, 136–137 (Romer, Romer), 313 618–619 creation of, 113
Merchandise trade balance, Monetary policy rule, 349 price elasticity of demand Great Depression, 113
410–411 Money. See also Monetary and, 614
Mexico policy profit and, 614–615 gross domestic product,
106–110
peso, exchange rate, banks, 243–251 profit-maximizing output, National Bureau of Economic
423–426 borrowing, lending, interest, price and, 612–613
tortilla prices, 75 237–238 resource or input, control of, Research (NBER),
10–11, 344
MFCL (marginal factor cost cash, 231, 235, 247–248 571 National income
of labor), 700–702 classical macroeconomics, technological superiority and,
Michigan, unemployment rate, 343 572 AD-AS model, 190–197,
199–207
124 counterfeit, 221, 234, 265 welfare effects of, 617–618
Microeconomics, 5 currency, 231, 235, 243 Monopsonist, 701–702 aggregate demand, 172–177
aggregate supply, 179–188
Microsoft, 227 defined, 231–232 Monopsony, 701–702 consumer spending, 161–166
Middle East, oil, 378 demand for, 268–273 Montana, unemployment rate, economic policy, 199–207,
Midpoint method, 462–464 history of dollar, 234 124 209–213
Minimum average total cost, holding, opportunity cost, Moral hazard, 784–785 expenditure, 158–170
555–556 268–270 Morgan, J. P., 254–255
Minimum, of curve, 41 inflation, 321–327 Movement along the demand investment spending,
166–170
Minimum wage, 82–85 interest rates, 273–275 curve, 51–52 multiplier, 158–161,
labor market, 128 measuring supply, 234–235 Movement along the supply 209–213
structural unemployment, multiplier, 248–251 curve, 60–62 National Income, 1929–35
129 output, prices, 315–319 MPC (marginal propensity
(Kuznets), 113
Minimum-cost output, present value, 237–241 to consume), 159–160, National income and prod-
555–556, 665 printing, 324 162–164
Mirror test, 119 roles of, 232–233 MPS (marginal propensity to uct accounts, 102–110.
See also National
Mitchell, Wesley, 344 seignorage, 324–326 save), 159–160 accounts
Model, 14 time value, 237–241 “Mr. Keynes and the Classics: A National savings, 223
Moderate inflation, 327–329 types of, 233–234 Suggested Interpretation” Natural gas, 63
Monetarism, 348–350, Money demand curve (MD), (Hicks), 347 Natural monopoly, 571
355–357 270–273, 444 MRPL (marginal revenue
Monetary aggregate, 234–235 Money market, 268–275, 444 product of labor), antitrust policy and,
756–758
Monetary base, 249–250, 266 Money multiplier, 248–251 700 control of, 621
A Monetary History of the United Money supply, 231–232, MRS (marginal rate of sub- public ownership, 619
States, 1867–1960 247–251 stitution), 792–795, regulation of, 619–620
(Friedman, Schwartz), cash, checkable deposits, 797–799 Natural rate hypothesis,
347–348 247–248 MS (money supply curve),
350–351
Monetary neutrality, 317–319 Federal Reserve, 265–266, 273–274 Natural rate of unemploy-
Monetary policy, 177 273–274, 307–309 Mugabe, Robert, 326 ment, 126, 130–132,
aggregate demand, 309–310 fixed, fiscal policy, 349 Mullainathan, Sendhil, 715 328, 337–338
asset prices, 358–359 increase effects, 316–317 Multiplier, 158–161 Natural resources, 378,
central bank targets, 358 interest rate, 307–309, fiscal policy, 209–213 389–390
contractionary, 310, 313 317–319 government policy influence, NBER (National Bureau of
demand/supply shocks, money multiplier, 248–251 209–213 Economic Research),
200–201 nominal, 322 government purchases of
10–11, 344
discretionary, 348, 357–359 price level, 321–324 goods and services, Near-moneys, 235
exchange rate, 437–438 Money supply curve (MS), 209–210 Negative demand shock, 172,
expansionary, 310, 355–356 273–274, 444 government transfers, 194–195
Federal Reserve System, Monopolist, 571 210–211 Negative economic profit, 533
262–266 Monopolistic competition, Great Depression, 161
versus fiscal policy, 355–357 574–575, 659 money, 248–251 Negative externalities, 392,
727