Terms to Know

Systematic Risk

Multiplier Effect

Crowding Out

Drop in the Bucket

Matter of timing

Automatic Stabilizers

Liquid Asset

Federal Funds Rate

Accounting Costs

Economic Costs

MR greater than or equal to MC

MR less than MC

MC equation

Profit in noncompetitive market

Optimal Social Output (Noncompetitive Market)

GDP Growth equation

Per Capita GDP equation

National Spending Approach of GDP

Factor Income Approach of GDP

Institutions

Fractional Reserve Banking (equation)

Money Multiplier (Definition)

Money Multiplier (equation)

Problems with Inflation

Money Illusion

Positive Real Returns

Negative real returns

Fisher effect

Fisher effect equation

Monetizing Debts

What shifts AD Curve

National Spending Identity

Rule of 70

CPI (Consumer Price Index)

Real Price

Quantity Theory of Money

Quantity Theory in growth form

Institutions

GDP Calculation

Steady State

Solow Growth Rate

Aggregate Demand Curve equation

Positive Real Shock

Short-run Aggregate Supply (SRAS)

Inelastic demand

Elastic Demand

Tragedy of the Commons

Ricardian Equivalence

Multiplier Effect

Aggregate Demand Curve

Aggregate Demand Shock

Coase theorem

Discount Rate

Equation for economic growth

Equation for elasticity of demand

Allocative Efficiency

High elasticity

Inelasticity

Inferior Good

National Saving Equation

Monopoly Profit Maximization

Increase in Aggregate Demand caused by

Savings equation

Private Savings equation

Consumption Smoothing

Leverage

Owner Equity equation

Leverage Ratio equation

Shadow Banking System

Insolvent

U-Rate

The natural unemployment rate

GDP deflator equation