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Macroeconomics
Chapter 2
16
Economics
Undergraduate 1
01/24/2011

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Term
graph
Definition
A pictorial representation of the relationship between two or more variables
Term
origin
Definition
The point at which the axes of a graph intersect
Term
scatter diagram
Definition
A graph that shows individual points relating values of the variable on one axis to values of the variable on the other
Term
intercept
Definition
The point at which a curve intersects an axis
Term
slope
Definition
The ratio of the change in the value of the variable on the vertical axis to the change in the balue of the variable on the horizontal axis measured between two points on the curve
Term
linear relationship
Definition
Relationship that exists between two variables when the curve between them has a constant slope
Term
linear curve
Definition
A curve with constant slope
Term
positive relationship
Definition
Relationship that exists between two variables when both variables move in the same direction
Term
negative relationship
Definition
relationship that exists between two variables when the variables move in opposite directions
Term
shift in a curve
Definition
Change in the graph of a relationship between two variables that implies new values of one variable at each value of the other variable
Term
movement along the curve
Definition
Change from one point on the curve to another that occurs when the dependent variable changes in response to a change in the independent variable
Term
rotation of a curve
Definition
Change in a curve that occurs when its slope changes with one point on the curve fixed
Term
nonlinear relationship
Definition
Relationship between two variables in which the slope of the curve showing the relationship changes as the value of one of the variables changes
Term
nonlinear curve
Definition
A curve whose slope changes as the value of one of the variables changes
Term
tangent line
Definition
A straight line that touches, but does not intersect, a nonlinear curve at only one point
Term
time-series graph
Definition
A graph that shows how the value of a particular variable or variables has changed over some period of time
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