Absolute (Money) Price


Liability Anything that is owed to someone else. Liquidity Effect



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Bog'liq
Glossary Rogers

Liability Anything that is owed to someone
else.
Liquidity Effect The change in the
interest rate due to a change in the supply of
loanable funds.
Liquidity Trap The horizontal portion of
the demand curve for money.
Loanable Funds Funds that someone
borrows and another person lends, for which
the borrower pays an interest rate to the
lender.
Lock-In Effect The situation when a
product or technology becomes the standard
and is difficult or impossible to dislodge as
the standard.
Logrolling The exchange of votes to gain
support for legislation.
Long Run A period of time in which all
inputs in the production process can be
varied (no inputs are fixed).
Long-Run Aggregate Supply (LRAS)
Curve The LRAS curve is a vertical line at
the level of Natural Real GDP. It represents
the output the economy produces when
wages and prices have adjusted to their final
equilibrium levels and when workers do not
have any relevant misperceptions.
Long-Run Average Total Cost (LRATC)
Curve A curve that shows the lowest (unit)
cost at which the firm can produce any given
level of output.
Long-Run Competitive Equilibrium
The condition where P 5 MC 5 SRATC
5 LRATC. Economic profit is zero, firms
are producing the quantity of output at which
price is equal to marginal cost, and no firm
has an incentive to change its plant size.

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