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PART ONE BASIC CONCEPTS
Equilibrium of Supply and Demand 45 Summary 419 Concepts for Review 419 Questions
How to Read Graphs
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aggregate demand aggregate supply assets balance billion budget business cycle capital capital deepening central bank competition consumers consumption function cornflakes costs countries currency debt decline deficit demand curve deposits determined disposable income dollar domestic economic growth economists effect efficient equilibrium example exchange rate expenditure exports factors Federal Reserve Figure firms fiscal policy foreign GDP deflator graph Gross domestic product higher impact important increase inflation inputs interest rates investment Keynesian labor long run lower macroeconomic major mand market economy measure ment monetary policy money supply multiplier model natural rate nomic nominal GDP percent Phillips curve ployment potential output price level production profits quantity real GDP recession reduce rise saving shift short run shows slope spending supply and demand supply curve Table tariff taxes technological theory tion trade unem unemployed unemployment unemployment rate United variables workers