Macroeconomics

Gross national product (GNP):

The total income

of all residents of a nation, including the income from

factors of production used abroad; the total expendi-

ture on the nation’s output of goods and services.

High-powered money:

The sum of currency and

bank reserves; also called the monetary base.

Human capital:

The accumulation of investments

in people, such as education.

Hyperinflation:

Extremely high inflation.

Hysteresis:

The long-lasting influence of history,

such as on the natural rate of unemployment.

Imperfect-information model:

The model of

aggregate supply emphasizing that individuals do not

always know the overall price level because they can-

not observe the prices of all goods and services in

the economy.

Import quota:

A legal limit on the amount of a

good that can be imported.

Imports:

Goods and services bought from other

countries.

Imputed value:

An estimate of the value of a good

or service that is not sold in the marketplace and

therefore does not have a market price.