Absolute Advantage The ability to produce a good or service with fewer resources than competitors. See also comparative advantage.
Accelerationist Hypothesis Belief that an effort to keep unemployment below its natural rate results in an accelerating inflation.
Accomodating Policy A monetary policy of matching wage and price increases with money supply increases so that the real money supply does not fall and push the economy into recession.
AD Aggregate demand.
Aggregate Demand Total quantity of goods and services demanded.
Aggregate Demand Curve Combinations of the price level and income for which the goods and services market is in equilibrium, or for which both the goods and services market and the money market are in equilibrium.
Aggregate Expenditure Curve Aggregate demand for goods and services drawn as a function of the level of national income.
Aggregate Production Function An equation determining aggregate output as a function of aggregate inputs such as labor and capital.
Aggregate Supply Total quantity of goods and services supplied.
Aggregate Supply Curve Combinations of price level and income for which the labor market is in equilibrium. The short-run aggregate supply curve incorporates information and price/wage inflexibilities in the labor market, whereas the long-run aggregate supply curve does not.
AS Aggregate supply.
Appreciation Increase in the value of a currency.
Arbitrage Transactions designed to make a sure profit from inconsistent prices.
Asset Something that is owned; a financial claim or a piece of property that is a store of value.
Automatic Stabilizer Any feature built into the economy that automatically cushions fluctuations.
Autonomous Expenditure Elements of spending that do not vary systematically with variables such as GDP that are explained by the theory. See also exogenous expenditure.
