A list of definitions relating to classical macroeconomic theory.
What are the terms that are essential for understanding basic macroeconomics?© SolutionLibrary Inc. solutionlibary.com 9836dcf9d7 https://solutionlibrary.com/economics/macroeconomics/a-list-of-definitions-relating-to-classical-macroeconomic-theory-1s9
... used to produce goods and services. The most common factors of production are capital (K) and labor (L).
Factor prices: the amounts paid to the factors of production.
Imports: Goods or services purchased from other countries.
Investment: Goods purchased by individuals or firms that add to their capital stock.
Government purchases: purchases made by the government.
Marginal product of capital: the extra ...