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SIGNALLING: The use of low-cost, easy to obtain information about a product or commodity to indicate the quality of a product. Signalling occurs when buyers use features of a commodity or actions by the seller to indicate overall product quality. These signals can be either intended or unintended.
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UNPLANNED INVESTMENT: Investment expenditures that the business sector undertakes apart from those they intend to undertake based on expected economic conditions, interest rates, sales, and profitability. Another term for unplanned investment is change in inventories, which result when aggregate expenditures differ from aggregate output. Unplanned investment can be either positive or negative, meaning business inventories can either rise or fall. Should unplanned investment occur, then actual and planned investment differ, aggregate expenditures are not equal to aggregate output, and the macroeconomy is not in equilibrium. See also | investment expenditures | change in inventories | change in business inventories | business sector | Keynesian economics | macroeconomics | equilibrium | actual investment | planned investment |
Recommended Citation:UNPLANNED INVESTMENT, AmosWEB GLOSS*arama, http://www.AmosWEB.com, AmosWEB LLC, 2000-2010. [Accessed: September 2, 2010].
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LAW A generally accepted, verified, proven, fundamental scientific relation. A law is a scientifically certified, thoroughly verified, cause-and-effect relation about the workings of the world. It has been tested and retested through the scientific method. The law of demand, law of increasing opportunity cost, and law of diminishing marginal utility are three fundamental (and extremely important) economic laws of nature.
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State of the ECONOMY
U.S. Population
August 11, 2010
309,962,769
Up again...U.S. Census Bureau
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ORANGE REBELOON
[What's This?]
Today, you are likely to spend a great deal of time flipping through the yellow pages trying to buy either a package of 4 by 6 index cards, the ones with lines or a 50 foot extension cord. Be on the lookout for spoiled cheese hiding under your bed hatching conspiracies against humanity.
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"The shifts of fortune test the reliability of friends. " -- Marcus Tullius Cicero, Roman statesman
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BPEA
Brookings Papers on Economic Activity
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