Absolute (Money) Price

Shirking The behavior of a worker who is
putting forth less than the agreed-to effort.
Shortage (Excess Demand) A condition
in which the quantity demanded is greater
than the quantity supplied. Shortages occur
only at prices below equilibrium price.
Short Run A period of time in which some
inputs in the production process are fixed.
Short-Run (Firm) Supply Curve The
portion of the firm’s marginal cost curve that
lies above the average variable cost curve.
Short-Run Aggregate Supply (SRAS)
Curve A curve that shows the quantity
supplied of all goods and services (Real
GDP) at different price levels, ceteris paribus.
Short-Run Equilibrium The condition in
the economy when the quantity demanded
of Real GDP equals the (short-run) quantity
supplied of Real GDP. This condition is met
where the aggregate demand curve intersects
the short-run aggregate supply curve.
Short-Run Market (Industry) Supply
Curve The horizontal addition of all
existing firms’ short-run supply curves.
Simple Deposit Multiplier The reciprocal of the required reserve ratio, 1/r.
Simple Quantity Theory of Money
The theory assuming that velocity (V ) and
Real GDP (Q) are constant and predicting
that changes in the money supply (M ) lead
to strictly proportional changes in the price
level (P ).
Slope The ratio of the change in the
variable on the vertical axis to the change in
the variable on the horizontal axis.