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Macroeconomics
- Average Propensity to Save – The percentage of total income that is put into savings.
- Average Propensity to Consume – The ratio of consumption to total income.
- Consumption Function – Calculates the relationship between consumption and disposable income.
- Fisher Equation – Connects the relationship between real interest rates, nominal interest rates, and inflation.
- GDP (expenditure and income approaches) – A measure of all goods and services produced over a period of time.
- GDP Deflator – The difference between nominal and real GDP.
- GDP Growth Rate – The difference in GDP between two years.
- Income Elasticity of Demand – How much the demand for a good or service will increase if income increases.
- Inflation Rate – The amount the CPI (consumer price index) is increasing.
- Labor Force Participation Rate – The percentage of people who are in the labor force (number of employed and unemployed) out of all people in the population.
- Labor Force – The total number of people who are employed or unemployed.
- Marginal Propensity to Consume – The amount consumption will increase (or decrease) for every increase (or decrease) in disposable income.
- Marginal Propensity to Import – The amount imports will increase (or decrease) for every increase (or decrease) in disposable income.
- Marginal Propensity to Save – The amount savings will increase (or decrease) for every increase (or decrease) in disposable income.
- Money Multiplier – The maximum amount of commercial bank money that can be created in a fractional-reserve banking system.
- National Savings – Total of both public savings and private savings in an economy.
- Net Capital Outflow – Measures the flow of capital in and out of an economy.
- Net Exports – Total exports in an economy minus total imports.
- Public Savings – The excess revenue a government brings in over their expenses.
- Private Savings – The amount an economy saves. Calculated as total income less taxes and consumption.
- Quantity Theory of Money (Money Supply, Velocity, Average Price Level, and Volume of Transactions) – Balances the price level of goods and services with the amount of money in circulation in an economy.
- Real Exchange Rate – An indication of what an equivalent good would cost in your economy.
- Real GDP – A variation of GDP adjusted for price changes such as inflation and deflation.
- Real Interest Rate – Interest rate adjusted for the inflation rate.
- Savings Function – Describes the relationship between income and consumption. Paired with consumption function.
- Spending Multiplier (Save and Consume) – The expectation of how much activity an investment will make.
- Tax Multiplier (Simple and Complex) – The amount that a decrease in taxes will generate in the economy.
- Unemployment Rate – The ratio of unemployed people to total people in the workforce.
Microeconomics