Macroeconomics

M1, M2, M3:

Various measures of the stock of

money, where larger numbers signify a broader defi-

nition of money.

Macroeconometric model:

A model that uses

data and statistical techniques to describe the econ-

omy quantitatively, rather than just qualitatively.

Macroeconomics:

The study of the economy as a

whole. (Cf. microeconomics.)

Marginal product of capital (MPK):

The

amount of extra output produced when the capital

input is increased by one unit.

Marginal product of labor (MPL):

The amount

of extra output produced when the labor input is in-

creased by one unit.

Marginal propensity to consume (MPC):

The

increase in consumption resulting from a one-dollar

increase in disposable income.