Economics 5E, Arnold, 2000 A Absolute income equality normative standard, 672 Absolute price, 58 Absolute real economic growth, 385 Abstract, 13 Accounting profit, 474, 695-697 Acreage allotment program, 606-607 Activist    case for activist monetary policy, 351-353    defined, 351 Adaptive expectations, 369-370, 375 Advertising    celebrities and, 413    monopolistic competition, 555    perfect competition, 520-521 Aggregate demand, 160-168    change in quantity demanded of real GDP vs. change in, 162    changes in, 162, 164    components of spending, 164-165    consumption changes and, 166-167    continued inflation, 328-330    defined, 160    effect on money supply, 168    government purchases and taxes affect on, 234    Great Depression, 176, 222, 225    investment changes and, 167    monetarist's view of, 320    net export changes and, 167-168    one-shot inflation, 324-325    self-regulating economy, 201-202    in short-run equilibrium, 173-178 Aggregate demand-aggregate supply framework    economic growth and, 386-388    equilibrium, 219-220    Great Depression, 222-223    Keynesian transmission mechanism, 343    long-run aggregate supply, 180-181    monetarism, 321-322    recessionary gap, 219-220    short-run aggregate supply, 168-173    simple quantity theory of money, 315-318 Aggregate demand curve    defined, 160    downward slope of, 161-162    interest rate effect, 161, 163    international trade effect, 161-162, 163    real balance effect, 161, 163 Aggregate price, 115 Aggregate supply    defined, 168    marginal tax rate cut, effect on, 246-247    one-shot inflation, 325    short-run aggregate supply, 168-173 Aggregate supply curve, in Keynesian framework, 224-226 Aging, economic growth and, 45 Agriculture    farm population, 604    futures contract, 602-603    in Great Britain, 605    high productivity of, 599-600    income elasticity, 600-601    price inelasticity, 601-602    technological advances and, 42    weather's effect on, 601, 603-604 Agriculture policy    acreage allotment program, 606-607    Federal Agriculture Improvement and Reform (FAIR) Act, 604, 609-612    marketing quota system, 607    nonrecourse commodity loans, 610    price support, 605-606    production flexibility contract payments, 609-610    restricting supply, 606-607    soil bank program, 607    target prices and deficiency payments, 607-608, 610 Airline industry    deregulation, 591-592    price of airline seats, 101 Air pollution, 711-714    fuel efficiency of cars and, 407    government sets pollution standards, 712    pollution permits, 713-714 Alchian, Armen, 455 Aluminum Company of America (Alcoa), 529, 576 Amazon, 517 Annual inflation rate, 118 Antidumping argument, for international trade restrictions, 757-758 Antitrust, 574-584    antitrust acts, 574-575    concentration ratio, 577-578    defined, 574    definition of market, 575-576    example cases and actions, 579-581    mergers and, 579    Microsoft case, 583-584    network monopolies, 582 Antitrust laws, 574 Apple Computer Corporation, 516 Appreciation of currency, 774    defined, 167 Arbitrage, 541    profit, 695-696 Argentina, inflation rate in, 118 Aristotle, 50 Asia, economic crisis in, 749 Assets, 465 Association, 16 Asymmetric information, 716-722    adverse selection, 720, 722    defined, 716    in factor market, 718    as market failure, 718-719    moral hazard, 722    in product market, 717-718 A Theory of Justice (Rawls), 672 Athletes    college-bound athletes and NCAA regulations, 649    economic rent and baseball players, 693-694    wage rates of professional, 633    as winner-take-all markets, 668-669 AT&T, 592-593 Australia    economic system of, 46    inflation rate in, 118    tax revenue in, 244    unemployment rate of, 126 Austria, tax revenue in, 244 Automatic fiscal policy, 233 Automobiles    adverse selection and used car sales, 720    present value and purchasing, 692    supply and demand of new and used, 92-93 Autonomous consumption, 213 Autonomous spending, 219-221 Average-cost pricing, 586 Average fixed cost, 481-482 Average-marginal rule, 489-490 Average propensity to consume, 214 Average propensity to save, 215 Average total cost    average-marginal rule, 490    price above, 505-507    in short run, 481-482 Average variable cost, 481-482    average-marginal rule, 489-490    of collector's stamps, 511    price below, 506-507 Axelrod, Robert, 564