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DEPRESSION: An extended period--a decade or so--of restructuring and institutional change in an economy that's often marked by declining or stagnant growth. During this period, unemployment tends to be higher and inflation lower than a regular, run-of-the-mill recession. Moreover, a depression usually lasts in the range of ten years, often encompassing two or three separate shorter-run business cycles. The most noted depression in the U. S. economy was the Great Depression of the 1930s.

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AVERAGE PROPENSITY TO SAVE: The proportion of income, usually measured as disposal income or national income, used for household saving. It is found by dividing saving by income. The average propensity to save, abbreviated APS, is most relevant for discussions of Keynesian economics. The average propensity to save is the average amount of total household income that is devoted to saving and NOT used for consumption expenditures.

     See also | disposable income | national income | saving | consumption expenditures | household sector | Keynesian economics | marginal propensity to consume | average propensity to consume | marginal propensity to save | saving function | saving line | Keynesian economics | saving-investment equality | circular flow | financial markets |


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BALANCE OF TRADE DEFICIT

The negative difference of the value of goods and services exported out of a country less the value of goods and services imported into the country. A balance of trade deficit is the official term for negative net exports that occurs when imports exceed exports. A balance of trade deficit is also termed an "unfavorable" balance of trade because it results in a net outflow of monetary payments from the domestic economic to the foreign sector, which tends to be bad for a country. The alternative is a balance of trade surplus in which exports exceed imports.

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