A nation’s knowledge of how to produce goods in the best possible way.

Keynes’ theory that the i% adjusts to bring the money market into equilibrium.

Scarce resources imply that individuals, firms, and governments are constantly faced with difficult choices that involve benefits and costs.

The amount of money held in order to make transactions. This is not related to the interest rate, but increases as nominal GDP increases.

The bottom of the business cycle where a contraction has stopped.

include unreported illegal activity, bartering, or informal exchange of cash.

The average number of times that a dollar is spent in a year. V is defined as pq/m.

As the avg. Pl rises, the purchasing power of wealth and savings begins to fall. High prices therefore tend to reduce the quantity of domestic output purchased.

The global equilibrium price of a good when nations engage in trade.