Adaptive expectations mean that expectations change gradually and incrementally.
Autonomous expenditures are expenditures that do not depend on income or production. Each sector of consumption, investment, government expenditures, and net exports is assumed to have a component, which is a function of income or production and a portion that is not.
Aggregate demand is the sum of all demands by all sectors.
Balanced budget multiplier is the multiplier when changes in government expenditures and taxes are equal.
Barter is the exchange of one thing for another, when neither good is “money.”
Comparative statics analysis compares two static equilibria without concern about how the market moves from one equilibrium ...