Examlex
The random walk theory indicates that
Inflation
A widespread rise in prices and a decrease in the value of money.
Spending Multiplier
A concept in Keynesian economics that quantifies the effect of an increase in autonomous spending on the total economic output.
Potential Output
The highest level of economic output that can be sustained over the long term without increasing inflation.
MPC
Marginal Propensity to Consume, which indicates the fraction of additional income that a household is likely to spend on consumption.
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