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July 15, 2018 

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SHORT-RUN EQUILIBRIUM: The condition that exists for the aggregate market when the product and financial markets are in equilibrium, but the resource markets are not. This condition results in the short run because of worker misperceptions about real wages and/or rigid wages and prices. It is represented by the intersection of the AD (aggregate demand) curve and the SRAS (short-run aggregate supply) curve and can be greater than or less than full employment.

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INVESTMENT DEMAND CURVE: A graphical depiction of the negative relation between investment expenditures and the interest rate, based on the marginal efficiency of investment for different capital investment projects. This curve is derived by plotting, from high to low, the marginal efficiency of investment for all possible capital investment projects. Because firms select those projects with returns greater than the interest rate on financial capital, this marginal efficiency of investment curve traces out the investment demand curve.

     See also | investment expenditures | investment demand | interest rate | marginal efficiency of investment | physical capital | financial capital | Keynesian economics |


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SCARCE GOOD

A tangible item produced with society's limited resources for the purpose of satisfying wants and needs. As a general notion, the phrase scarce good can also commonly include intangible services produced with society's limited resources for the purpose of satisfying wants and needs. A synonymous term for scarce good is economic good.

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Today, you are likely to spend a great deal of time visiting every yard sale in a 30-mile radius hoping to buy either a velvet painting of Elvis Presley or a wall poster commemorating yesterday. Be on the lookout for broken fingernail clippers.
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A thousand years before metal coins were developed, clay tablet "checks" were used as money by the Babylonians.
"The time to repair the roof is when the sun is shining."

-- John F. Kennedy, 35th U. S. president

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