DEFINITIONS

Gross National Product (GNP) is Gross Domestic Product

(GDP) plus net factor income from abroad. 

A direct tax is a tax an individual or organization pays directly

to the imposing entity. A taxpayer, for example, pays direct
taxes to the government for different purposes, including
real property tax, personal property tax, income tax, or taxes
on assets.

An indirect tax is collected by one entity in the supply chain

(usually a producer or retailer) and paid to the
government, but it is passed on to the consumer as part of
the purchase price of a good or service. The consumer is
ultimately paying the tax by paying more for the produc

M1 is the money supply that is composed of physical

currency and coin, demand deposits, travelers' checks, other
checkable deposits, and negotiable order of withdrawal
(NOW) accounts.

M2 is a calculation of the money supply that includes all

elements of M1 as well as "near money." M1 includes cash
and checking deposits, while near money refers to savings
deposits, money market securities, mutual funds, and
other time deposits

Open market operations (OMO) refers to when the Federal

Reserve buying and sells primarily US treasury on the open
market in order to regulate the supply of money that is on
reserve in U.S. banks, and therefore available to loan out to
businesses and consumers. 

LABOUR FORCE
The labor force is the number of people who are employed
plus the unemployed who are looking for work.1
The labor pool does not include the jobless who aren't
looking for work.

FRICTIONAL UNEMPLOYMENT.
the unemployment which exists in any economy due to
people being in the process of moving from one job to
another.