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 TOTAL REVENUE CURVE: A curve that graphically represents the relation between total revenue received by a firm for selling its output and the quantity of output sold. It is used with the firm's total cost curve to determine economic profit. The marginal revenue curve, a key factor for determining the profit-maximizing level of a firm's output, is derived directly from the total revenue curve. This curve is constructed to capture the relation between total revenue and the level of output, holding other variables constant.
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 Lesson 19: Money Creation | Unit 4: The Multiplier Page: 16 of 23

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A multiplier captures the magnified relationship between an activity and the triggering event.The money creation process:
• The activity is the deposit creation.
• The trigger event is extra bank reserves.
The multiplier:
• In our example, the banking system creates \$1,000 of deposits from \$100 worth of reserves.
• The deposit multiplier equals 10: Each \$1 of extra reserves triggers 10 times the amount in deposits.
D = mR

D = Number of deposits created.
R = Number of reserves added to the banking system.
m = The value of the multiplier (10 in the example).

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LONG-RUN TREND

The pattern of potential real gross domestic product of an economy based on full employment of available resources. The long-run trend is commonly represented as a positively-sloped line in a diagram depicting business-cycle phases. This slope captures the economy's expansion in its production possibilities resulting from increases in the quantity and quality of resources.

 WHITE GULLIBON[What's This?] Today, you are likely to spend a great deal of time wandering around the downtown area seeking to buy either any book written by Stephan King or a T-shirt commemorating next Thursday. Be on the lookout for bottles of barbeque sauce that act TOO innocent.Your Complete Scope
 There were no banks in colonial America before the U.S. Revolutionary War. Anyone seeking a loan did so from another individual.
 "Executives who get there and stay suggest solutions when they present the problems. "-- Malcolm Forbes, business executive