Economics 1022A/B Chapter Notes - Chapter 24: Technological Change, Potential Output, Monetary Base

• School: Western University
• Department: Economics
• Course: Economics 1022A/B
• Professor: Jeannie Gillmore

Document Summary

Chapter 24 - money, the price level, and inflation. Money is defined as any commodity or token that is generally acceptable as a means of payment. Means of payment = method of settling a debt. Medium of exchange = any object that is generally accepted in exchange for goods and services. Without it, goods and services must be exchanged directly for other goods and services. It requires a double coincidence of wants - very rare. Unit of account = an agreed measure for stating the prices of goods and services. Opportunity cost is not based on dollars and cents but rather the number of actual goods and services you must give up. Store of value = money is a store of value in the sense that it can be held and exchanged later for goods and services. Money is not the only thing that acts as a store of value.