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| 13968939965 | economies of scale | the property whereby long-run average total cost falls as the quantity of output increases | 0 | |
| 13968939966 | diseconomies of scale | the property whereby long-run average total cost rises as the quantity of output increases | 1 | |
| 13968966857 | Average Variable Cost (AVC) | variable cost divided by the quantity of output | 2 | |
| 13968976926 | Average Total Cost (ATC) | total cost divided by the quantity produced in a given time period | 3 | |
| 13968978365 | Average Fixed Cost (AFC) | total fixed costs divided by quantity of output | 4 | |
| 13968998676 | velocity of money | the rate at which money changes hands | 5 | |
| 13969000451 | velocity of money equation | V=nominal GDP/ money supply | 6 | |
| 13969065116 | substitution effect | the change in the quantity demanded of a good that results from a change in price, making the good more or less expensive relative to other goods that are substitutes | 7 | |
| 13969124783 | Inflation | A continuous rise in the price of goods and services | 8 | |
| 13969124784 | Stagflation | a period of slow economic growth and high unemployment (stagnation) while prices rise (inflation) | 9 | |
| 13969211584 | buy bonds in the open market | increase the money supply, decreases the interest rate | 10 | |
| 13969216175 | Sell bonds on the open market | decrease the money supply, increases interest rate | 11 | |
| 13969230913 | interest rates increase | aggregate demand decreases, bond price decreases, growth of capital stock slows, long run growth decreases, international demand for bond and currency increases, currency appreciates, net exports decrease | 12 | |
| 13969234438 | interest rates decrease | aggregate demand increases, bond prices increase, growth of capital stock increases, long run growth increases, international demand for bond and currency decreases, currency depreciates, net exports increase | 13 | |
| 13969251891 | Inflation and Interest Rates | Puts upward pressure on interest rates by shifting supply of funds inward and demand for funds outward | 14 | |
| 13969257207 | nominal interest rate | the interest rate as usually reported without a correction for the effects of inflation | 15 | |
| 13969259084 | nominal interest rate equation | nominal interest rate = real interest rate + inflation rate | 16 | |
| 13969303760 | Interest rates and bond prices | inversely related | 17 | |
| 13969323586 | money supply curve |  | 18 | |
| 13969326996 | loanable funds market |  | 19 | |
| 13969331920 | economy graph |  | 20 | |
| 13969384562 | Philips Curve | a curve that shows the short-run trade-off between inflation and unemployment |  | 21 |
| 13969401571 | natural monopoly | an industry in which one firm can achieve economies of scale over the entire range of market supply | 22 | |
| 13969418578 | Monopoly | the exclusive possession or control of the supply or trade in a commodity or service. |  | 23 |
| 13969426583 | Monopsony | firm hires the majority of workers in a field |  | 24 |
| 13969489567 | cross-price elasticity of demand | a measure of how much the quantity demanded of one good responds to a change in the price of another good, computed as the percentage change in quantity demanded of the first good divided by the percentage change in the price of the second good. negative- complements. positive- substitutes | 25 | |
| 13969492652 | substitutes | two goods for which an increase in the price of one leads to an increase in the demand for the other | 26 | |
| 13969494484 | complements | two goods for which an increase in the price of one leads to a decrease in the demand for the other | 27 | |
| 13969505571 | deadweight loss | the fall in total surplus that results from a market distortion, such as a tax, or a socially harmful good being sold at market price as opposed to socially optimal cost. |  | 28 |
| 13969530605 | monopolistic competition | A market structure in which barriers to entry are low and many firms compete by selling similar, but not identical, products. | 29 | |
| 13969551917 | financial account | the part of the balance of payments that records purchases of assets a country has made abroad and foreign purchases of assets in the country. (stocks/bonds) | 30 | |
| 13969558337 | current account | in the balance of payments, records transactions involving the export or import of goods and services | 31 | |
| 13969585917 | Spending Multiplier | 1/MPS | 32 | |
| 13969585918 | money multiplier | 1/reserve ratio | 33 | |
| 13969755116 | federal funds rate | Interest rate banks charge each other for loans | 34 | |
| 13969756378 | discount rate | The interest rate on the loans that the Fed makes to banks | 35 | |
| 13969794058 | inflation rate equation | CPI Year 2 - CPI Year 1/ CPI Year 1 x 100 | 36 | |
| 13969798435 | real interest rate formula | nominal interest rate - inflation rate | 37 | |
| 14015107166 | Effects of Fiscal Policy | Expansionary fiscal policy is defined as an increase in government expenditures and/or a decrease in taxes that causes the government's budget deficit to increase or its budget surplus to decrease. Contractionary fiscal policy is defined as a decrease in government expenditures and/or an increase in taxes that causes the government's budget deficit to decrease or its budget surplus to increase. | 38 | |
| 14015112586 | Effects of monetary policy | The Fed is engaging in expansionary monetary policy when it uses any of its instruments of monetary policy in such a way as to cause an increase in the supply of money. The Fed is said to engage in contractionary monetary policy when it uses its instruments to effect a reduction in the supply of money. | 39 | |
| 14015133659 | unit of account | a means for comparing the values of goods and services | 40 | |
| 14015133660 | medium of exchange | anything that is used to determine value during the exchange of goods and services | 41 | |
| 14015135964 | fiat money | money that has value because the government has ordered that it is an acceptable means to pay debts | 42 | |
| 14015163617 | currency | a system of money in general use in a particular country. | 43 | |
| 14015194804 | business cycle | peak, recession, trough, expansion | 44 | |
| 14015342226 | capital inflow | In economics, capital inflow is the amount of capital coming into a country, for example in the form of foreign investment. | 45 |
