making by individual units such as a a or an household, firm, and with individual markets, specific goods and services, industry and product and resource prices. Microsoft case A 2002 antitrust case in which Microsoft was found guilty of violating the by engaging in a series Sherman Act of unlawful activities designed to maintain its monopoly in operating systems for personal computers; as a remedy the company was prohibited from engaging in a set of specific anticompetitive business practices. A method for calculating midpoint formula p rice elasticity of demand or that averages the two prices and two price elasticity of supply quantities as the reference points for computing percentages. minimum efficient scale (MES) The lowest level of output at which a firm can minimize long-run average total cost. minimum wage The lowest that employers may legally wage pay for an hour of work. The historically recent phenomenon modern economic growth in which nations for the first time have experienced sustained increases in real GDP per capita. monetarism The macroeconomic view that the main cause of changes in aggregate output and is fluctuations in the price level espoused by advocates of a money supply; monetary rule. monetary multiplier The multiple of its by which excess reserves the banking system can expand and thus the checkable deposits by making new loans (or buying securities); equal to money supply 1 divided by the reserve requirement. monetary policy A central changing of the money supply bank’s to influence interest rates and assist the economy in achieving price stability, full employment, and economic growth. monetary rule The rule suggested by As traditionally monetarism. formulated, the rule says that the should be expanded money supply each year at the same annual rate as the potential rate of growth of the the supply of money real gross domestic product; should be increased steadily between 3 and 5 percent per year. (Also see Taylor rule.) Any item that is generally acceptable to sellers in exchange money for goods and services. Money available to purchase simply money capital capital; as defined by economists. money, money income (See nominal income.) money market The market in which the demand for and the supply of money determine the (or the level of interest interest rate rates) in the economy. G-18 Glossary money market deposit accounts (MMDAs) Bank- and thriftprovided
making by individual units such as a household, a firm, or an industry and with individual markets, specific goods and services, and product and resource prices. Microsoft case A 2002 antitrust case in which Microsoft was found guilty of violating the Sherman Act by engaging in a series of unlawful activities designed to maintain its monopoly in operating systems for personal computers; as a remedy the company was prohibited from engaging in a set of specific anticompetitive business practices. midpoint formula A method for calculating p rice elasticity of demand or price elasticity of supply that averages the two prices and two quantities as the reference points for computing percentages. minimum efficient scale (MES) The lowest level of output at which a firm can minimize long-run average total cost. minimum wage The lowest wage that employers may legally pay for an hour of work. modern economic growth The historically recent phenomenon in which nations for the first time have experienced sustained increases in real GDP per capita. monetarism The macroeconomic view that the main cause of changes in aggregate output and price level is fluctuations in the money supply; espoused by advocates of a monetary rule. monetary multiplier The multiple of its excess reserves by which the banking system can expand checkable deposits and thus the money supply by making new loans (or buying securities); equal to 1 divided by the reserve requirement. monetary policy A central bank’s changing of the money supply to influence interest rates and assist the economy in achieving price stability, full employment, and economic growth. monetary rule The rule suggested by monetarism. As traditionally formulated, the rule says that the money supply should be expanded each year at the same annual rate as the potential rate of growth of the real gross domestic product; the supply of money should be increased steadily between 3 and 5 percent per year. (Also see Taylor rule.) money Any item that is generally acceptable to sellers in exchange for goods and services. money capital Money available to purchase capital; simply money, as defined by economists. money income (See nominal income.) money market The market in which the demand for and the supply of money determine the interest rate (or the level of interest rates) in the economy. G-18 Glossary money market deposit accounts (MMDAs) Bank- and thriftprovided
honors_textbook_glossary.docx