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average propensity to save (APS)
savings rate, the percent of disposable income used for savings, also the the slope of S as a function of Yd
average propensity to consume (APC)
percent of disposible income used for consumption, also the slope of C as a function of Yd
numerical gauges that show the change in the average price level relative to some base period (ex. CPI, PPI, IPD, etc)
equilibrium level of national income/output (Ye)
level of Y at which AS = AE and net change in inventories = 0, economy is at rest since there is no pressure to expand or contract
disequilibrium level of national income/output
any level of Y other than Ye, net change in inventories is not equal to 0, economy feels pressure to expand or contract
full-employment level of national income/output (Y*)
level of output at which the economy achieves full employment(NAIRU)
marginal propensity to withdraw (MPW)
percentage of a change in national income used for S+T+M (savings, taxes, imports), also the slope of W
marginal propensity to spend (z)
percentage of change in national income used for spending, also the slope of AE
labor force/work force/labor pool
4 types: full time paid, part time paid (1+hr/wk), volunteers >= 15hrs/wk, involuntarily unemployed
unemployment rate (U)
# people involuntarily out of work looking for jop / labor force (round to .1 place)
full employment unemployment rate (NAIRU-non accelerating inflation rate of unemployment)
lowest rate of unemployment realistically achieveable given no cyclical unemployment, virtually no structural unemployment and minimal frictional unemployment
all increases in price level prior to attainment of full employment, includes cost/push, profit/push, structural inflation
all increases in price level which occur at full-employment, demand/pull inflation caused by excess AEs beyond capacity of economy to produce is a form of pure inflation
reluctance of price level to fall despite decreases in output and employment, businesses more likely to lay off workers/reduce output than lower prices
goods which have a usable lifespan of 1-3 yrs, tend to be produced/sold based on business cycle
goods which have a usable lifespand of less than 1-3 yrs, tend to be produced/sold constantly
form of cost-push inflation (range2), considered healthy for economy since firms increase employees and output
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