Absolute (Money) Price

Long-Run Equilibrium The condition
that exists in the economy when wages and
prices have adjusted to their (final) equilibrium levels and when workers do not have
any relevant misperceptions. Graphically,
long-run equilibrium occurs at the intersection of the AD and LRAS curves.
Long-Run (Industry) Supply (LRS)
Curve Graphic representation of the quantities of output that the industry is prepared
to supply at different prices after the entry
and exit of firms are completed.
Lorenz Curve A graph of the income distribution that expresses the relationship between
the cumulative percentage of households and
the cumulative percentage of income.
M
M1 Currency held outside banks plus
checkable deposits plus traveler’s checks.
M2 M1 plus savings deposits (including
money market deposit accounts) plus smalldenomination time deposits plus money
market mutual funds (retail).
Macroeconomics The branch of
economics that deals with human behavior
and choices as they relate to highly aggregate
markets (e.g., the goods and services market)
or the entire economy.
Managed Float A managed flexible
exchange rate system, under which nations
now and then intervene to adjust their
official reserve holdings to moderate major
swings in exchange rates.
Managerial Coordination The process
in which managers direct employees to
perform certain tasks.