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October 16, 2018 

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IEBNR: The abbreviation for income earned but not received. The three types of income earned but not received by the factors of production are Social Security taxes, corporate profits taxes, and undistributed corporate profits. In each case a factor of production has rightfully "earned" the income by contributing to valuable production contained in gross domestic product. However, because this income is not paid to the factor and it is not income received by the household sector. IEBNR is subtracted from national income to calculate personal income.

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Lesson 16: Aggregate Shocks | Unit 4: Complex Shifts Page: 16 of 21

Topic: SRAS <=PAGE BACK | PAGE NEXT=>

Shifts of the SRAS curve that move the aggregate market away of the long-run equilibrium also trigger the self-correcting mechanism that moves it back.
  • The initial shift of the SRAS curve is caused by any of the ceteris paribus determinants.
  • The self-correcting shift of the SRAS curve is caused by wage changes triggered by an imbalance in the labor market.

Once again, we have two alternatives:

  • Short run aggregate supply increases.
  • Short run aggregate supply decreases.

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VERTICAL MERGER

The consolidation of two or more separately-owned businesses, that have an input-output relation, into a single firm. This is one of three types of mergers. The other two are horizontal merger--two competing firms in the same industry that sell the same products--and conglomerate merger--two firms in separate, unrelated industries.

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APLS

PINK FADFLY
[What's This?]

Today, you are likely to spend a great deal of time waiting for visits from door-to-door solicitors trying to buy either a travel case for you toothbrush or a looseleaf notebook binder. Be on the lookout for the happiest person in the room.
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This isn't me! What am I?

The average length of a "business lunch" is about 36 minutes.
"Success is more a function of consistent common sense than it is of genius. "

-- An Wang, industrialist

CBI
Confederation of British Industry
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