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PPI: The abbreviation for Producer Price Index, which is an index of the prices domestic producers receive from selling their output. THE Producer Price Index is actually one of several producer price indexes compiled and published monthly by the Bureau of Labor Statistics (BLS). THE Producer Price Index reported regularly in the media is actually the Producer Price Index for All Commodities. Other members in the family of producer price indexes include an array of broad, composite indexes (including finished consumer goods, capital goods, and crude materials); indexes that track the prices received by producers in virtually every major production industry in the country (including lumber, iron and steel, household furniture, and passenger cars); and price indexes for thousands of specific products. In total, the producer price index family includes well over 10,000 separate indexes.

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Lesson 12: Business Cycles | Unit 5: Policies Page: 23 of 26

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Stabilization policies try to avoid or correct the problems caused by business cycle instability.
  • The two most popular are fiscal policy and monetary policy.
  • Do nothing 'nonpolicies' might be best in some cases, but are seldom used because people often demand immediate solutions to problems.
  • Business cycle instability is indicated by the red line rising above and falling below the long-run trend line.
  • The flatter, smoother line is the goal of stabilization policy, to limit business cycle instability.
  • Stabilization policies can be either expansionary or contractionary.

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MARGINAL FACTOR COST, PERFECT COMPETITION

The change in total factor cost resulting from a change in the quantity of factor input employed by a perfectly competitive firm. Marginal factor cost, abbreviated MFC, indicates how total factor cost changes with the employment of one more input. It is found by dividing the change in total factor cost by the change in the quantity of input used. Marginal factor cost is compared with marginal revenue product to identify the profit-maximizing quantity of input to hire.

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APLS

ORANGE REBELOON
[What's This?]

Today, you are likely to spend a great deal of time looking for the new strip mall out on the highway looking to buy either a T-shirt commemorating the second moon landing or a coffee cup commemorating Thor Heyerdahl's Pacific crossing aboard the Kon-Tiki. Be on the lookout for the happiest person in the room.
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This isn't me! What am I?

A thousand years before metal coins were developed, clay tablet "checks" were used as money by the Babylonians.
"There comes a time when the mind takes a higher plane of knowledge but can never prove how it got there. "

-- Albert Einstein, physicist

M2
M1 plus savings types of near monies, including savings deposits, certificates of deposits, money market deposits, repurchase agreements, and Eurodollars
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