Economics, 3rd Edition

inflationary gap 

the difference between full employment 

output and actual expenditure when actual expenditure is 

greater than full employment output

informationally efficient 

reflecting all available information 

in a rational way

in-kind transfers 

transfers to the poor given in the form of 

goods and services rather than cash

internalizing an externality 

altering incentives so that 

people take account of the external effects of their actions

intertemporal choice 

where decisions made today can affect 

choices facing individuals in the future

interventionist supply-side policies 

policies focused 

on improving the working of markets through investing in 

infrastructure, education and research and development

investment 

spending on capital equipment, inventories and 

structures, including household purchases of new housing