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Rational Expectations: Market participants intuitively anticipate systemic policy actions and their consequences for the economy; thus, on average, private market forecasts are accurate and planned policy is ineffectual (see New Classical Macroeconomics).

Real GNP: The GNP of any year measured in the prices of a base year. Real GNP is nominal GNP adjusted for inflation.

Real Rate of Interest: The dollar interest rate corrected for inflation; equal to the nominal rate minus the inflation rate.

Real Wage: Ones wage adjusted for inflation.

Regressive Taxes: A greater portion of income is taken from those in lower levels than from those in upper income levels.

Rent Controls: Fixed limits on rents that can be charged to tenants by owners according to a legal restriction.

Retained Earnings: Business profits which are held by firms and not paid to the stockholders of the firm; the earnings are usually reinvested by the firms.

Revenues: Total gross earnings of a firm before subtracting costs.

Right-to-Work Laws: Laws banning union membership as a requirement for continued employment.



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