oMultiplier effect: A macroeconomic component in the aggregate expenditure model focusing on the way changes in expenditures are magnified in their influence on equilibrium GDP.oMultiplier model: A macroeconomic component involved in the aggregate expenditure model that focuses on the way changes in aggregate expenditures or aggregated demand magnify their influence on equilibrium GDP.•NoNational debt: A country's accumulated deficit minus any accumulated surpluses over time.oNational income: A nation's total income earned by the factors of production-individuals and businesses.oNational income accounting: A set of rules and definitions for measuring economic activity, such as national income, in the entire economy of a nation.oNatural rate of unemployment: A statistic stated as a percentage that represents the lowest level of unemployment possible that will not cause rising inflation; the unemployment rate at which actual inflation equals expected inflation.oNet domestic product (NDP): A figure arrived at by subtracting the capital consumption allowance (for example, using standard rules of depreciation) from the gross domestic product (GDP); this is the amount of money available for consumption spending or for addition to a country's capital coffers.oNet exports: Exports minus imports; money spent on goods imported from other countries do not contribute to the gross domestic product for a country.oNet foreign factor income: Income from foreign domestic factor sources minus foreign factor income earned domestically.oNet private investment: Gross private investment minus depreciation.
oNet taxes: Taxes collected by the government minus any government transfer payments to households and businesses.oNew Growth Theory: A perspective in economics that highlights the importance of ideas and technology in explaining economic progress.oNominal GDP: A statistic measuring gross domestic product at existing prices.oNominal deficit: This is the budget shortfall determined by looking at the difference between expenditures and receipts.oNominal income: The amount of money earned during a specific period of time as measured in the number of dollars received.oNominal surplus: This is the budget excess determined by looking at the difference between expenditures and receipts.oNonaccelerating inflation rate of unemployment (NAIRU): An alternative term for the target rate of unemployment; a statistic representing an attainable level of joblessness without causing prices to increase.oNondurable goods: Products with a short lifespan, which means they are expected to need replacement within three years.•OoOkun's Law: A 1% change in the unemployment rate will result in a 2% change in the GDP in the opposite direction. Also called Okun's Rule of Thumb.
You've reached the end of your free preview.
Want to read all 37 pages?