potential output
The level of real GDP (gross domestic product) that can be sustained in the long run and that is consistent with constant inflation.
The level of real GDP (gross domestic product) that can be sustained in the long run and that is consistent with constant inflation.
Located on Wall Street in New York City, the NYSE is the largest stock exchange in the world.
In reference to a loan, points consist of a lump sum payment made by the borrower at the outset of the loan period. Generally, each point equals one percent of the loan amount.
The rate of unemployment attainable without stimulating an increase in the inflation rate.
The amount of money (coins, paper currency, and checking accounts) that is in circulation in the economy.
An economy with relatively consistent values of goods and services from year to year, all things being equal, has price stability. When price levels are rapidly fluctuating, businesses and consumers don’t spend as much and the economy suffers.
A good that generates a social benefit that everyone can enjoy and that no one can be deprived of. Examples include national defense and clean air.
The amount of physical output for each unit of productive input.
A variable-rate agreement, as distinguished from a fixed rate agreement, calls for an interest rate that may fluctuate over the life of the loan. The rate is often tied to an index that reflects changes in market rates of interest. A fluctuation in the rate causes changes in either the payments or the length of […]
Indicates a country’s level of freedom in trading with other countries. Tariffs may be added to goods and services to collect government revenue or to encourage purchases of one product over another (typically a domestically produced one over an imported one).
Rates of interest determined by the interaction of the supply of and demand for funds in freely functioning markets.
The failure of a market to allocate resources in the way that most efficiently satisfies the needs and wants of society.
Long-term joblessness caused by shifts in the economy. Often structural unemployment occurs because of changes in technology.
Risk that a disruption at a firm, in a market segment, to a settlement system or in a similar setting will cause widespread difficulties at other firms, in other market segments or in the financial system as a whole.
Incentives that benefit a specific company (e.g., loans at below-market interest rates or tax breaks) not general economic policies of the government that improve the business climate (e.g., corporate tax reductions).