Page 921 - Krugmans Economics for AP Text Book_Neat

INDEX I-11

Research and development Shifts of the aggregate demand Short-run aggregate supply South Korea
(R&D), 386–387 curve, 174–177, 444 curve (SRAS) economic growth, 379–381
Reserve ratio, 244 demand shock, 191–194 classic model of the price natural resources, 378
Reserve requirements, 246, existing stock of physical level, 322–323 Spain, economic growth, 382
263 capital, 176 Keynesian versus classical Specialization, 23–24, 563
Reserves, 248–249 expectation changes, 175 macroeconomics, 345 Spreading effect, 554
Resources, 3–4 fiscal policy, 176–177 versus long-run, 186–187 SRAS. See Short-run aggre-
natural, 378 government policy, 176 long-run macroeconomic gate supply curve
scarce, 3–4, 571 government spending, 204 equilibrium, 194 SRPC (short-run Phillips
wasted, 80–81, 84–85 monetary policy, 177 money supply increase, curve), 331–335
Retained earnings, 167 rightward versus leftward 316–317 Stabilization policy, 199–201,
Retirees, 119 shifts, 175 movement along, 181 357
Returns to scale, 562–564 short-run effects, 191–192 shifts of, 181–184, 444 Stagflation (stagnation plus
Reuters, 305 wealth changes, 175–176 Short-run costs inflation), 193, 334
Revaluation, 436–437 Shifts of the demand curve, concepts and measures, 564 Standardized product,
RFC (Reconstruction Finance 52–56, 444 versus long-run, 559–564 569–570
Corporation), 256–257 effects, 71–72 Short-run equilibrium aggre- Starbucks, 47–48, 53–55
Rhoades, Cecil, 570 equilibrium, 72 gate output, 190–193 Stern, Nicholas, 392
Rival in consumption, 743 expectation changes, 54–55 Short-run equilibrium Stewart, Jimmy, 245
Roast magazine, 54 income changes, 53–54 aggregate price level, Sticky wages, 180
Rockefeller, John D., 255 versus movement along the 190–193 Stimulus package, 2008, 211, 213
Rogoff, Kenneth, 351 demand curve, 51–52 Short-run fluctuations, eco- Stock, 104, 224, 227
Romer, Christina, 313 normal/inferior goods, nomic growth, 400–401 Stock bubble, 359
Romer, David, 313 53–54 Short-run individual supply Stock market crash, 175–176
Roosevelt, Franklin Delano, number of consumers, 55–56 curve, 594–595, 600 Stock of physical capital, 176
245, 256, 346 related goods/services prices, Short-run industry supply Store of value, 232
Rosetta, 84 53 curve, 599–601 Strategic behavior, 647
Rule of 70, 369 simultaneous supply curve Short-run macroeconomic Structural unemployment,
Russia shifts, 73–74 equilibrium, 190–191 128–130, 132
bond default, 305 substitutes, complements, 53 Short-run market equilibri- Subletting, 80–81
coffee, tea, 54 taste changes, 54 um, 600–601 Subprime lending, 258–259
S Shifts of the money demand Short-run Phillips curve Substitutes, 53, 57
(SRPC), 331–335
curve, 271–273, 444
in factor markets, 706–707
Shifts of the short-run aggre- expected inflation, 333–334 in production, 63
S&L (savings and loan), 257 gate supply curve, supply shocks, 332–333 Substitution effect, 458–459
Sachs, Jeffrey, 383 181–184, 444 Short-term interest rates, Summer job, decline of, 699
Sales tax, 202–203 commodity prices, 182–183 268–270 Sunk cost, 563–564
Salt, Veruca, 239 nominal wages, 183 Shut-down price, 593–595 Supplemental Nutrition
Sanders, Bernie, 393 productivity, 183–184 Signaling, 784 Assistance Program, 769
Savings rightward versus leftward Simple circular-flow diagram, Supply and demand model,
capital flow, 413, 415–416 shifts, 182 102–103 47–56
investment spending, 222–224 supply shock, 192–194 Single-price monopolist, 624 demand curve, 49–56
private, 105, 281, 415–416
Savings and loan (S&L, Shifts of the supply curve, Sloan, Alfred, 670 equilibrium, 49–56, 66–69
60–65, 444
Slope, 37
equilibrium shifts, 71–74
thrift), 257
Savings and loan crisis of the effects, 72–73 of horizontal and vertical exchange rate, 429
curves, 38
equilibrium, 73
price controls, 77–85
1980s, 257
Savings-investment spending expectation changes, 63 of linear curve, 37–38 quantity control, 88–93
supply curve, 59–65
maximum and minimum
input prices, 62–63
identity, 222–224, 284
points, 40–41
Scale effects, 562 versus movement along the of nonlinear curves, 39–40 Supply curve, 59–65
supply curve, 62
individual, 63–64
Scale, returns to, 562–563 number of producers, 63–64 Smith, Adam, 23, 233 law of supply, 60
Scandinavian Sandwich, 85 related goods/services prices, Smog, 391 market, 64
Scarce, 3–4 63 Social insurance, 202–204 movement along, 60–61
Scatter diagram, 42–43 simultaneous demand curve Social insurance taxes, 202–203 rightward versus leftward
School lunches, price floors shifts, 73–74 Social Security, 147, 203–204, shifts, 61
and, 84
303–304, 769
Schumpeter, Joseph, 344 substitutes/complements in Social Security Administration, shift effects, 72–73
production, 63
shifts, 60–65, 444
Schwartz, Anna, 347 technology changes, 63 304 supply schedule, 59–60
Screening, 783–784 Shocks, 438 Social Security trust fund, 304 Supply price, 90
Secret Service, 221 demand, 172, 191–197, 200 Socially optimal quantity of Supply schedule, 59–60
Securitization, 227, 259 price, 190 pollution, 725 Supply shock, 192–194, 197
Seignorage, 324–326 supply, 192–194, 197, Solar power, 392 versus demand shock,
Self-correcting, 195–196, 199 200–201, 332–333 Solow, Robert, 379 193–194, 197
Self-sufficiency, 23–24 Shoe-leather costs, 136–137 Sotheby’s, price-fixing, 655 economic policy, 200–201
Sensitivity to price, 626 Short run, 542 South Africa, monetary neutral- short-run Phillips curve,
Sherman Antitrust Act of 1890, Shortage, 68–69 ity, 318 332–333
653, 755