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February 9, 2023 

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RECESSIONARY GAP: The difference between the equilibrium real production achieved in the short-run aggregate market and full-employment real production the occurs when short-run equilibrium real production is less than full-employment real production. A recessionary gap, also termed a contractionary gap, is associated with a business-cycle contraction. This is one of two alternative output gaps that can occur when short-run production differs from full employment. The other is an inflationary gap.

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FORTUNE 500: A list of the 500 largest (in terms of sales) publicly held corporations in the good old U. S. of A., as compiled and published by Fortune magazine. While other business-oriented magazines publish similar lists, this one has come to symbolize the largest, most powerful bastions of the second estate. For a business to achieve ranking on the Fortune 500 is a mark of success. For consumers, the Fortune 500 is often a mark of powerlessness. If you're interested, Fortune also provides a list of the 500 largest foreign companies, and separate lists of the 50 largest banks; utilities; and retail, transportation and diversified financial companies.

     See also | corporation | big business | blue chip | Dow Jones averages | second estate | market control |


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DERIVATION, AGGREGATE EXPENDITURES LINE

An aggregate expenditures line, a graphical depiction of the relation between aggregate expenditures and the level of aggregate income or production, can be derived by sequentially adding expenditures by the four macroeconomic sectors (household, business, government, and foreign). This derivation process begins with the consumption line, then adds investment, government purchases, and finally net exports. The process actually generates three alternative aggregate expenditures lines based on the number of sectors included (two sector, three sector, and four sector).

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