Factors of production

Production function

Constant returns to scale

Factor prices


Accounting Profit

Marginal product of labour (MPL)

Diminishing marginal product

Marginal product of capital (MPK)

Real rental price of capital

Economic profit versus accounting profit

Disposable income

Consumption function

Marginal propensity to consume (MPC)

Interest rate

Nominal interest rate

Real interest rate

National saving (saving) (S)

Private saving

Public saving

Loanable funds

Crowding out