Supply-side economics, 357
Surplus,68, 83–84. See also
Budget surplus
Survey of Current Business
(Department of
Commerce), 113
Sustainable,389–393
Sweden, tax revenue, 202
Switzerland
exchange rate, 425
monetary neutrality, 318T
T-account,243 –244
Tacit collusion
price wars and, 653–655
prisoners’ dilemma and,
647–649
Tangency condition,795–796
Target federal funds rate,
273, 307–309
Tastes, demand curve and, 54
Tax incidence,502–505
Taxes, 202–205
benefits and costs of,
506–508
cuts, 211
excise, 499–502, 505–506
fiscal policy, 202–205
inflation, 324–325
lump-sum, 211
models, 14
multiplier, 210–212
price elasticities and, 502–505
progressive, 499
proportional, 499
regressive, 499
revenue, 202–203, 212
stimulus package, 213
supply-side economics, 357
surcharge, 209
Taxicab medallions, quantity
controls and, 88–93
Taylor, John, 311–312
Taylor rule for monetary
policy,311–312
Tea, demand curve and, 49,
53–54, 71–72
Technology, 21
aggregate production func-
tion, 374–378
government, 388
information technology, 379
money demand curve,
272–273
productivity, 371, 377–378
research and development,
386–387
superiority, monopolies and,
572
supply curve, 63
Technology spillover, 738
TED spread, 259–260
Tehachapi Wind Farm, 390
Thatcher, Margaret, 508
Thelma and Louise, 645A Theory of the Consumption
Function(Friedman), 165
Thought experiments, 14
Thrift, 257
Time allocation, 695
Time lags, 206–207
Time value, money, 237–241
Time-series graph, 42
Tit for tat,647–648
Tortillas, supply and demand,
75
Total consumer surplus, 485
Total cost,530, 548, 564
Total cost curve,549–550
Total factor productivity,
377–378
Total producer surplus, 490
Total product curve, 543
Total revenue,468–470, 530
Total surplus,495–496,
498–505
Trade,23–29
Trade balance,410 – 411
Trade, international. SeeOpen
economy
Trade system, 232
Trade-off,16 –21
Traffic, law of demand and, 57
Transaction costs,225, 728
Transfer payments, 409 –410,
412
Transfers, government, 105,
203–205, 210–211
Treasury bills, 264–265, 324
Trusts, 254, 652
Turkey, lira, 322
12 regional Federal Reserve
Banks, 255–256
2008 stimulus package, 211, 213
Two-part tariffs, 628
Two-variable graph, 34–36
Two-way capital flows, 416U
U6, 120
UAW (United Auto Workers),
129
Underemployed, 120
Unemployed, 119
Unemployment, 12
benefits, 130, 132
business cycle, 11–12
cyclical, 130, 328–329
duration distribution, 127
economic growth, 122–123
Federal Reserve, 313
frictional, 127–128, 130
job creation/destruction,
126 –127
long-run Phillips curve,
335–336
macroeconomic theories, 356
natural rate, 126, 130–132,
328, 337–338
nonaccelerating inflation
rate of, 336–337real GDP, 122–123
recessions, 122
reduction, fiscal/monetary
policy, 356
short-run Phillips curve,
331–335
structural, 128–130, 132
Unemployment insurance, 769
Unemployment rate, 12
versusactual unemployment,
119 –121
alternative measures of, 121
budget deficit, 298
defining, measuring, 119
demographics, 120–121
inflation, 134, 328–329
inflationary gap, 328
natural, 126, 130–132, 328,
337–338
output gap, 328–329
recessionary gap, 195, 328
significance of, 119–121
United States, 11–12,
118–124, 126–132, 298,
332–338
Unions, 713
Unit of account, 233
United Auto Workers (UAW),
129
United Kingdom. SeeBritain
United Nations, 383
United Nations Climate Change
Conference, 393
United Network for Organ
Sharing (UNOS), 488
United States (U.S.)
actual/potential output, 397
antipoverty programs,
768 –771
balance of payments,
409–413
banking system, 253–260
budget deficit, 296–304
business cycles, 11–12
carbon dioxide emissions,
392
clothing production, 27
consumer price index,
143 –147, 337
debt, 296–304
deflation, 338–341
dollar, 234, 407, 419–426
economic growth, 13,
365–371
exchange rate, 431–432
factor distribution of income
in, 681–682
farms, 477
Federal Reserve System,
253–260, 262–266
government spending,
202–204
gross domestic product, 13,
106–110, 367, 382
housing boom, 157, 169,
258–259housing bubble, 258–259,
358–359, 416
income inequality, 764–768
inflation, 12, 135–139, 321,
332–338
international capital flows,
415 – 417
loanable funds market, 414
monetary neutrality, 318
money system, 233–235
national accounts, 102–110
natural resources, 378
oil consumption, 391
poverty, 761–762
price controls, 1970s, 656
price floors, surplus, 82–84
producer price index, 143,
145 –146
recessions, 10–11, 197
taxes, 202–204
unemployment, 11–12,
118–124, 126–132, 298,
332–338
unemployment benefits, 130
United States Census Bureau,
119
United States Department of
Commerce, 102, 113
United States Justice Depart -
ment, price-fixing, 641
United States Treasury, 265, 324
United States Treasury bills,
264–265, 324
Unit-elastic,467–471
Unit-free measure, 476
Unit-of-account costs,
137–138
UNOS (United Network for
Organ Sharing), 488
Unplanned inventory invest-
ment,169 –170
Unplanned investment spend-
ing, 168–170
Uruguay, economic growth, 381
U.S. SeeUnited States
U-shaped average total cost
curves,553, 555–556
Utility, 511
budget constraints, 514–515
budget lines, 514–515
consumption and, 511–513
marginal dollar, 518–521
optimal consumption bun-
dle, 515–517
principle of diminishing
marginal utility,
513 –514
Utility function, 512. See also
Indifference curves
Utils,512, 790V
Value added, 107
Value in diversity, 669
Value of the marginal prod-
uct,684–686I-12 INDEX