O intermediate output goods and services produced for

Info icon This preview shows pages 32–33. Sign up to view the full content.

View Full Document Right Arrow Icon
o Intermediate output: Goods and services produced for use by businesses for resale or use in further processing or manufacturing. o Invisible Hand Theory: A theory which states that a market economy will distribute resources efficiently through the price mechanism; it is based on the notion that the actions of individuals, although undertaken for their own economic self-interest, end up benefiting society as a whole. o Item weight: A statistic used in the calculation of the consumer price index to gauge inflation; expressed as a percentage of the total consumer spending on a certain good or service. J o Joint Economic Committee (JEC): A group of U.S. senators and state representatives who research economic issues and report to the president. K o Keynesian Theory: A macroeconomic perspective in which the market economy is perceived as unstable and intervention policy can be used to influence employment, inflation, and growth. L o Labor: Human skills and talents that are used in the production of goods and services. o Labor force participation rate: A statistic stated as a percentage representing the portion of the total population who are willing and able to work and who are actively seeking work. o Laissez-faire: French term for leave it alone. Part of Classical Theory of Economics; the concept of a self- adjusting market mechanism. o Land: A factor of production referring to natural resources. o Law of demand: With all other things being equal, the quantity of a good purchased has an inverse relationship with its price, assuming nothing else changes. o Law of supply: When the amount of a product supplied in a certain time period increases, its price also increases, assuming everything else remains the same. o Leading indicators: Statistics that tell us what's likely to happen in the economy 12 to 15 months in the future. o Limited liability: An advantage of corporations; the maximum an investor or owner risks losing is the price paid for stock in the company. o Limited partners: Owners with limited liability; their potential losses are limited to their initial investment, and they do not share in management of the company. o Long-run: In microeconomics, this is a period of time long enough to allow producers to change quantities of all factors (all resources and costs are variable); in macroeconomics, a timeframe long enough for nominal wages and other factors to change in response to a change in the economy's price level. o Long-run aggregate supply (LAS) curve: A diagram that shows the relationship between real GDP and price level during a relatively long period of time (long enough for factor prices to change in response to changes in price level). M o M1: A type of money that refers to currency in the hands of the public, checking account balances, and travelers' checks.
Image of page 32

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 33
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern