Term
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Definition
| A visual model of the economy that shows how dollars flow through markets among households and firms |
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Term
| production possibilities frontier |
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Definition
| a graph that shows the combinations of output that the economy can possibly produce given the available factors of production and the available production technology |
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Term
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Definition
| The study of how households and firms make decisions and how they interact in markets |
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Term
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Definition
| The study of economy-wide phenomena, including inflation, unemployment, and economic growth |
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Term
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Definition
| claims that attempt to describe the world as it is |
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Term
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Definition
| claims that attempt to prescribe how the world should be |
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