Glossary
Absolute income hypothesis: The basic principle of absolute income hypothesis is that the individual consumer will determine the fraction of his current income that he will allocate to consumption on the basis of his absolute income level.
Accelerator principle: The basic relationship that exists between the investment and the change in the output level is known as the accelerator principle.
Accelerator: The capital output ratio, k, is known as the accelerator.
Accommodating transactions: Accommodating transactions are those transactions that take place for the specific purpose of equalizing the balance of payments from an accountant’s point of view.
Aggregate demand curve: The aggregate demand curve shows the different combinations ...
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