Course glossary

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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.


Browse the glossary using this index

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I

Import quota

A limitation on the amount of a good that can be imported into the domestic market.

Income effect

The change in qd that results from a change in the consumer’s purchasing power (or real income)

Inferior goods

A good for which high income decreases D.

Inflation

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

Inflationary gap

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

Interest rate effect

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.

Intermediate goods

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

Investment demand

The 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 credit

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