Absolute (Money) Price

Inferior Good A good for which demand
falls (rises) as income rises (falls).
Inflation An increase in the price level.
Inflation Targeting Targeting that
requires the Fed to keep the inflation rate
near a predetermined level.
Inflationary Gap The condition in
which the Real GDP that the economy is
producing is greater than the Natural Real
GDP and the unemployment rate is less
than the natural unemployment rate.
Initial Public Offering (IPO) A company’s
first offering of stock to the public.
Insolvency The condition when liabilities
are greater than assets.
Institution The rules of the game in a
society or, more formally, the humanly
devised constraints that shape human
interaction; the rules and regulations,
laws, customs, and business practices of a
country.
Interest Rate Effect The changes in
household and business buying as the
interest rate changes (in turn, a reflection
of a change in the demand for or supply of
credit brought on by price level changes).
Intermediate Good A good that is an
input to the production of a final good.
Internalizing Externalities An externality is internalized if the persons or group
that generated the externality incorporate
into their own private or internal cost-benefit
calculations the external benefits (in the case
of a positive externality) or the external costs
(in the case of a negative externality) that
third parties bear.