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O demand curve a graph showing the amount of a

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o Demand curve: A graph showing the amount of a product that buyers are willing and able to purchase at alternative prices during a certain time period. o Demand-pull inflation: An increase in product prices occurring when total spending exceeds the economy's ability to provide goods and services at existing prices. o Deposit creation: The creation of transaction deposits by simply crediting an individual's bank account. o Depreciation: In the production process, the consumption of capital through the wearing out of plants and equipment. o Discount rate: The interest rate private banks must pay for borrowing reserves from the Federal Reserve Bank. o Discounting: This refers to the Federal Reserve's lending of cash reserves to private banks. o Discouraged workers: Individuals who are not actively looking for jobs but would seek or accept positions if they were available. o Disposable income: Personal income after personal taxes available for personal consumption and savings. o Durable goods: Products that have a long life span, which means they are expected to last longer than three years. E o Economic force: The necessary reaction to the scarcity of valuable resources.
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o Economic growth: An increase in the amount of goods and services produced in an economy. o Economic model: Abstract framework for perceiving the real world, based on combinations of economic principles. o Economic perspective: A way of viewing the world which explains economic behavior and outcomes in terms of scarcity of resources and rational decision making based on a cost-benefit analysis. o Economic principle: Commonly agreed upon assumption about the economic world, based on accumulated results of cause-andeffect research. o Economic theory: Statement about cause-andeffect relationships derived from rigorous testing of hypotheses and generally accepted by most economists. o Economics: The study of how people use scarce resources. o Employee compensation: A factor of production used to calculate the gross domestic product using the income approach. o Employment Act of 1946: U.S. federal legislation committing the government to creating conditions in the economic market that enhance employment opportunities. o Employment rate: A statistic stated as a percentage representing the portion of the total population who are currently working. o Entrepreneurship: Using resources to produce new products and technologies or improvements on existing products and technologies. o Equilibrium: A state in the market economy in which dynamic pressures of supply and demand offset one another. o Equilibrium price: The price when there is no surplus or shortage; when quantity supplied and quantity demanded are in balance and equal. o Equilibrium quantity: The amount bought and sold at the equilibrium price.
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