ba 3300 notes #1

Question 1

Real Money Supply function

Answer 1

Ms/P = f(Ms,P)

Question 2

what firms are willing to produce at price level P.

Answer 2

Aggregate Supply

Question 3

is the total amount of goods and services demanded for different aggregate prices levels (P) in the economy. An increase in the aggregate price level is known as inflation.

Answer 3

The aggregate demand curve (AD)

Question 4

Structure a single company has almost exclusive control over the supply of a good or service

Answer 4

Monopolistic market

Question 5

defined as sum of squared market shares s (in %) for all n active firms in an industry

Answer 5

The Herfindahl-Hirschman Index (HHI)

Question 6

(P − MC)/P

Answer 6

Lerner Index