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AGGREGATE: A common modifier for an assortment of economic terms used in the study of macroeconomics that signifies a comprehensive, often national, total value. This modifier most often surfaces in the study of the AS-AD, or "aggregate market", model of the economy with such terms as aggregate demand and aggregate supply. For example, aggregate demand indicates the total demand for production in the macroeconomy and aggregate supply indicates the total amount of that output produced. Two other noted "aggregate" terms are aggregate expenditures and aggregate production function.

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Lesson 18: Banking | Unit 5: The Economy Page: 23 of 24

Topic: Problems <=PAGE BACK | PAGE NEXT=>

When banks are properly controlled they provide benefits, but when they get out of hand they can do a world of bad.

Problems:

  • When a bank fails to maintain adequate reserves, it runs the risk of starting a chain reaction that could cause economy-wide financial instability.

Instability:

  • Banking regulations have lessened, but not eliminated, banking instability problems.
  • Controlling instability is one challenge of monetary policy.

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INCREASING MARGINAL RETURNS

In the short-run production by a firm, an increase in the variable input results in an increase in the marginal product of the variable input. Increasing marginal returns typically surface when the first few quantities of a variable input are added to a fixed input. This is one of two alternatives for marginal returns. The other is decreasing marginal returns. A related phenomenon for long-run production is increasing returns to scale.

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APLS

BROWN PRAGMATOX
[What's This?]

Today, you are likely to spend a great deal of time browsing about a thrift store wanting to buy either a large, stuffed kitty cat or a cross-cut paper shredder. Be on the lookout for a thesaurus filled with typos.
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The Dow Jones family of stock market price indexes began with a simple average of 11 stock prices in 1884.
"The greatest things ever done on Earth have been done little by little. "

-- William Jennings Bryan

CRRA
Constant Relative Risk Aversion
A PEDestrian's Guide
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