Import quotaA limitation on the amount of a good that can be imported into the domestic market. |
Income effectThe change in qd that results from a change in the consumer’s purchasing power (or real income) |
Inferior goodsA good for which high income decreases D. |
InflationThe percentage change in the cpi from one period to the next. |
Inflationary gapThe amount by which equilibrium gdp exceeds full-employment GDP. |
Interest rate effectIf 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. |
Intermediate goodsGoods that require further modification before they are ready for final use. |
Investment demandThe inverse relationship between the real interest rate and the cumulative dollars invested. Like any demand curve, this is drawn with a negative slope. |
Investment tax creditA reduction in taxes for firms that invest in new capital like a factory or piece of equipment. |