Course glossary

During lectures you will learn new words. Using this link you are welcome to add them to our "course glossary", so that other students will be able to see them and learn. Let's make our own useful glossary and help each other to learn new words! By the way, there are already some worlds which should be familiar for you till the end of the course, try to cover them when you mill have free time.

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D

Debt financing

A firm’s way of raising investment funds by issuing bonds to the public.

Decision to invest

A firm invests in projects so long as the real expected real rate of return is greater than the i.

Deflation

A sustained falling pl, usually due to weakened ad and a constant as.

Demand curve

A graphical depiction of the d schedule.

Demand for loanable funds

The negative relationship between the real interest rate and the dollars invested by firms.

Demand schedule

A table showing qd for a good at various prices.

Demand-pull inflation

This inflation is the result of stronger c from all sectors of ad as it continues to increase in the upward sloping range of as. The pl begins to rise and inflation is felt in the economy.

Depression

A prolonged, deep contraction in the business cycle.

Determinates of AD

AD is a function of the four components of domestic spending (cigxx) if any of these components increases or decreases, holding the others constant, ad shifts right or left.

Determinates of AS

AS is a function of many factors that impact the production capacity of the nation. If these factors make it easier, or less costly, for a nation to produce, as shifts to the right. If these factors make it more difficult, or more costly, for a nation to produce, then as shifts to the left.