Economics, 3rd Edition

Nash equilibrium 

a situation in which economic actors 

interacting with one another each choose their best strategy 

given the strategies that all the other actors have chosen

national saving (saving) 

the total income in the economy 

that remains after paying for consumption and government 

purchases

natural monopoly 

a monopoly that arises because a single 

firm can supply a good or service to an entire market at a 

smaller cost than could two or more firms

natural-rate hypothesis 

the claim that unemployment 

eventually returns to its normal, or natural, rate, regardless of 

the rate of inflation

natural rate of output 

the output level in an economy 

when all existing factors of production (land, labour, capital 

and technology resources) are fully utilized and where 

unemployment is at its natural rate