5 Steps to a 5 AP Macroeconomics 2019

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❮ 221 absolute advantage The ability to produce more of a good than all other producers. absolute (or money) prices The price of ...

222 ❯ Glossary consumption and saving schedules Tables that show the direct relationships between disposable income and consumpt ...

Glossary ❮ 223 the right toward full employment and lower the unemployment rate. expansionary monetary policy Increases in the m ...

224 ❯ Glossary liability of a bank Anything owned by depositors or lenders to the bank. liquidity A measure of how easily an ass ...

Glossary ❮ 225 normal goods A good for which demand increases with an increase in consumer income. official reserves account The ...

226 ❯ Glossary supply schedule A table showing quantity supplied for a good at various prices. supply shock An economy-wide phen ...

❮ 227 Chapter 5 Optimal decision making: MB = MC Opportunity cost from a production possibility curve or frontier (PPC or PPF): ...

228 ❯ Important Formulas and Conditions Equilibrium in the loanable funds market: S = I Spending multiplier: = 1/(1 - MPC) = 1/ ...