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Unformatted text preview: National Income - The total amount of money earned in an economy in a year. C.f. GDP. Net Exports - The difference between exports and imports. Nominal Interest Rate - The cost of borrowing money, unadjusted for inflation. Nominal Value - The value of something in current currency, unadjusted for inflation. Output - The amount of goods and services produced in an economy. This can be in quantity or in currency. Price Level - The overall level of prices within an economy. Real Exchange Rate - The rate that goods and services of one country can be traded for goods and services of another country. Real Interest Rate - The cost of borrowing money, adjusted for inflation. Real Value - The value of something in constant currency, adjusted for inflation. Formulae Formula for Output or income Y = C(Y - T) + I(r) + G + NX(e) = basic equation for aggregate demand = IS curve equation LM curve equation M/P = L(r,Y)...
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- Fall '08