Economics: An Analytical Approach

aggregate amount analysis assets assume average balance sheet billion capital cash cent Chapter checks commercial banks competition condition constant consumption function cost curve decrease demand curve demand deposits demand for money demand function depreciation determined disposable income dollars earnings economic system elasticity employment equal Equation equilibrium price example excess reserves expenditures factors factors of production Federal Reserve banks Federal Reserve System given gross national product increase industry input combination input Number interest rate inventory investment iso-product contour labor level of income liabilities linear programming loans long-run M₁ machine marginal cost member banks ment money supply national income normal profits payments present value price level problem production function productive services profits propensity to consume purchase quantity of money rate of interest relationship represents returns to scale schedule shift substitution supply curve supply function Suppose taxes tion total cost w₁ w₂ wages x₁ y₁