Induced expenditure Induced expenditure is the sum of the components of aggregate expenditure that varies with real GDP . Induced taxes Induced taxes are taxes that vary as real GDP varies. An organized group of workers who have a variety of skills and job types but work for the same industry. Contrast to craft union . In terms of production, the condition where less than the maximum output is produced with given resources and technology .
Inefficiency implies the possibility of gains in one area without losses in another.
When demand is inelastic, there is a direct relationship between changes in the price of the good and the total revenue received by the firm. The infant-industry argument is the argument that protection is necessary to enable an infant industry to grow into a mature industry that can compete in world markets. Inferior goods Normal goods are products which exhibit an inverse relationship between changes in income and changes in their demand, holding the price of the product constant. As income increases, there is a decrease in demand for those products which are inferior goods. Compare to normal goods .