The percentage change in the cpi from one period to the next.

The amount by which equilibrium gdp exceeds full-employment GDP.

If the avg. Price level rises, consumers and firms might need to borrow more money for spending and capital investment, which increases the interest rate and delays current consumption. This postponement reduces current consumption of domestic production as the price level rises.

Goods that require further modification before they are ready for final use.

The inverse relationship between the real interest rate and the cumulative dollars invested. Like any demand curve, this is drawn with a negative slope.

A reduction in taxes for firms that invest in new capital like a factory or piece of equipment.

Holding all else equal, when the price of a good rises, consumers decrease their quantity demanded for that good.

The more of a good that is produced, the greater the opportunity cost of producing the next unit of that good.

Anything owned by depositors or lenders.

A measure of how easily an asset can be converted to cash.