Glossary of economics

{{defn|Relates to "the exchange of goods and services, especially on a large scale". The concept is believed to have been introduced into by John Maynard Keynes in 1936, who used it to develop the notion of a government spending multiplier.}} ==D==

{{defn|The gradual decrease in the economic value of the of a firm, nation, or other entity, either through physical depreciation, obsolescence, or changes in the demand for the services of the capital in question. If the capital stock is K_t in one period t, gross (total) investment spending on newly produced capital is I_t and depreciation is D_t, the capital stock in the next period, K_{t+1}, is K_t + I_t - D_t. The net increment to the capital stock is the difference between gross investment and depreciation, and is called .}} ==E==