Absolute (Money) Price

Elasticity of Demand for Labor The
percentage change in the quantity demanded
of labor divided by the percentage change in
the wage rate.
Elasticity of Investment A measure of
the responsiveness of investment to changes
in the interest rate.
Employment Rate The percentage of the
civilian noninstitutional population that is
employed: Employment rate 5 Number of
employed persons/Civilian noninstitutional
population.
Entrepreneurship The talent that some
people have for organizing the resources of
land, labor, and capital to produce goods,
seek new business opportunities, and
develop new ways of doing things.
Equation of Exchange An identity
stating that the money supply (M ) times
velocity (V ) must be equal to the price level
(P ) times Real GDP (Q ): MV ; PQ.
Equilibrium Equilibrium means “at
rest.” Equilibrium in a market is the
price—quantity combination from which
buyers or sellers do not tend to move away.
Graphically, equilibrium is the intersection
point of the supply and demand curves.
Equilibrium Price (Market-Clearing
Price) The price at which the quantity
demanded of the good equals the quantity
supplied.
Equilibrium Quantity The quantity
that corresponds to equilibrium price. The
quantity at which the amount of the good
that buyers are willing and able to buy
equals the amount that sellers are willing
and able to sell, and both equal the amount
actually bought and sold.