McKinsey and Co., 370
MD (money demand curve),
270 –273, 444
Mean household income, 765
Means-tested, 768
Means-tested programs,
antipoverty, 768 –769
Medallions, taxicabs, quantity
controls, 88–93
Median household income,
765
Medicaid, 203–204, 303–304
Medicare, 203–204, 303–304
Medium of exchange, 232
Med-Stat, 457
Mega Millions, 241
Menu costs,136 –137
Merchandise trade balance,
410 – 411
Mexico
peso, exchange rate,
423–426
tortilla prices, 75
MFCL (marginal factor cost
of labor),700–702
Michigan, unemployment rate,
124
Microeconomics, 5
Microsoft, 227
Middle East, oil, 378
Midpoint method,462–464
Minimum average total cost,
555–556
Minimum,of curve, 41
Minimum wage,82–85
labor market, 128
structural unemployment,
129
Minimum-cost output,
555–556, 665
Mirror test, 119
Mitchell, Wesley, 344
Model, 14
Moderate inflation, 327–329
Monetarism,348–350,
355–357
Monetary aggregate,234–235
Monetary base,249–250, 266
A Monetary History of the United
States, 1867–1960
(Friedman, Schwartz),
347–348
Monetary neutrality,317–319
Monetary policy, 177
aggregate demand, 309–310
asset prices, 358–359
central bank targets, 358
contractionary, 310, 313
demand/supply shocks,
200–201
discretionary, 348, 357–359
exchange rate, 437–438
expansionary, 310, 355–356
Federal Reserve System,
262–266
versusfiscal policy, 355–357inflation, 310–313
interest rate, 307–313,
317–319
macroeconomic theories,
355–359
monetarism, 348–350
monetary neutrality, 317–319
money supply, 316–319
output, prices, 315
in practice, 310–313
recessions, 355–356
revival of, 347–348
unconventional, 359
unemployment reduction,
356
“Monetary Policy Matters”
(Romer, Romer), 313
Monetary policy rule, 349
Money.See alsoMonetary
policy
banks, 243–251
borrowing, lending, interest,
237–238
cash, 231, 235, 247–248
classical macroeconomics,
343
counterfeit, 221, 234, 265
currency, 231, 235, 243
defined, 231–232
demand for, 268–273
history of dollar, 234
holding, opportunity cost,
268–270
inflation, 321–327
interest rates, 273–275
measuring supply, 234–235
multiplier, 248–251
output, prices, 315–319
present value, 237–241
printing, 324
roles of, 232–233
seignorage, 324–326
time value, 237–241
types of, 233–234
Money demand curve (MD),
270 –273, 444
Money market, 268–275, 444
Money multiplier,248–251
Money supply,231–232,
247–251
cash, checkable deposits,
247–248
Federal Reserve, 265–266,
273–274, 307–309
fixed, fiscal policy, 349
increase effects, 316–317
interest rate, 307–309,
317–319
money multiplier, 248–251
nominal, 322
price level, 321–324
Money supply curve (MS),
273 –274, 444
Monopolist, 571
Monopolistic competition,
5 74–575, 659efficiency of, 665
in long run, 661–663
versusperfect competition,
663–665
in short run, 659–661
Monopoly,570, 614–615. See
alsoNatural monopoly
definition of, 571
demand curve, marginal rev-
enue and, 608–612
economies of scale, 571
government-created barriers
and, 572
versusperfect competition,
613 – 614
power, prevention of,
618 – 619
price elasticity of demand
and, 614
profit and, 614–615
profit-maximizing output,
price and, 612–613
resource or input, control of,
571
technological superiority and,
572
welfare effects of, 617–618
Monopsonist,701–702
Monopsony,701–702
Montana, unemployment rate,
124
Moral hazard,784–785
Morgan, J. P., 254–255
Movement along the demand
curve,51–52
Movement along the supply
curve,60–62
MPC (marginal propensity
to consume),159–160,
162–164
MPS (marginal propensity to
save),159 –160
“Mr. Keynes and the Classics: A
Suggested Interpretation”
(Hicks), 347
MRPL (marginal revenue
product of labor),
700
MRS (marginal rate of sub-
stitution),792–795,
797–799
MS (money supply curve),
273 –274
Mugabe, Robert, 326
Mullainathan, Sendhil, 715
Multiplier,158 –161
fiscal policy, 209–213
government policy influence,
209–213
government purchases of
goods and services,
209–210
government transfers,
210 –211
Great Depression, 161
money, 248–251MPC, MPS, 159–160
stimulus package, 213
taxes, 210 –212
Muth, John, 352
Mutual fund, 228N
NAIRU (nonaccelerating
inflation rate of
unemployment),
336–337
Nash equilibrium, 646
Nash, John Forbes, 646
National accounts,102–110
circular-flow diagram,
102–106
creation of, 113
Great Depression, 113
gross domestic product,
106 –110
National Bureau of Economic
Research (NBER),
10 –11, 344
National income
AD-AS model, 190–197,
199–207
aggregate demand, 172–177
aggregate supply, 179–188
consumer spending, 161–166
economic policy, 199–207,
209–213
expenditure, 158–170
investment spending,
166 –170
multiplier, 158–161,
209–213
National Income, 1929–35
(Kuznets), 113
National income and prod-
uct accounts,102–110.
See alsoNational
accounts
National savings, 223
Natural gas, 63
Natural monopoly, 571
antitrust policy and,
756–758
control of, 621
public ownership, 619
regulation of, 619–620
Natural rate hypothesis,
350–351
Natural rate of unemploy-
ment,126, 130–132,
328, 337–338
Natural resources, 378,
389–390
NBER (National Bureau of
Economic Research),
10 –11, 344
Near-moneys, 235
Negative demand shock, 172,
194 –195
Negative economic profit, 533
Negative externalities,392,
727I-8 INDEX