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Previous Chapter:
8 Applying Insights
Next Chapter: References
Suggested Citation:
"Glossary." National Academies of Sciences, Engineering, and Medicine. 2024. Incorporating Climate Change and Climate Policy into Macroeconomic Modeling: Proceedings of a Workshop. Washington, DC: The National Academies Press.
doi: 10.17226/27447.
Glossary
| Capital stock | Current value of fixed capital measured by the expected stream of future production (Diongson, 2022) |
| Employment growth | Increase in the total number of jobs (BLS, 2023b) |
| Employment rate | Number of people working of those available to work, such as of working age (BLS, 2023b) |
| Fiscal policy | Actions of the national government related to taxes and expenditures (Board of Governors of the Federal Reserve System, 2017) |
| GDP | A standard measure of overall economic activity, defined as the market value of domestic goods and services (Amadeo, 2023) |
| GDP growth | Rate of economic expansion or contraction determined by comparing the economic output of the latest quarter to that of the preceding quarter (Amadeo, 2023) |
| Income | Combined monetary income and specific cash revenues (BLS, 2023a) |
| Inflation | Rise in the costs of goods and services over a period of time (Board of Governors of the Federal Reserve System, 2016) |
| Interest rate | Additional cost imposed by a lender on a borrower on top of the principal for the use of assets (Reeves, 2022) |
| Labor force | Total number of individuals at or above age 16 who are either working or actively looking for work (BLS, 2023a) |
| Labor productivity | A metric of economic performance that compares the quantity of economic output to the amount of labor used to produce that output (BLS, 2023a) |
Suggested Citation:
"Glossary." National Academies of Sciences, Engineering, and Medicine. 2024. Incorporating Climate Change and Climate Policy into Macroeconomic Modeling: Proceedings of a Workshop. Washington, DC: The National Academies Press.
doi: 10.17226/27447.
| Natural rate of interest (R*) | Interest rate in the short term that would exist when the economy is operating at its maximum employment capacity and maintaining stable inflation levels, representing the rate at which monetary policy has a neutral impact, causing neither economic contraction nor expansion (Boocker et al., 2023) |
| Monetary policy | Measures taken by central banks to attain macroeconomic policy goals, such as maintaining stable prices, achieving maximum employment, and ensuring consistent and steady economic expansion (Board of Governors of the Federal Reserve System, 2017) |
| Sectoral inflation | Rise of prices across various economic sectors within a country, that is, as the costs of various raw materials surge, the prices of final products in different sectors also concurrently increase (Zoellick, 2021) |
| Total factor productivity | Economic measure of efficiency that is determined by the ratio of aggregate inputs, also called multifactor productivity (Sickles and Zelenyuk, 2019) |
| Welfare | Value gained by a person or persons by obtaining material goods and services (Samuelson and Nordhaus, 2004) |
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