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Glossary - definitions

A
Activity rate
Ad valorem tax
Affordability Index
Aggregate demand
Aggregate supply
Asymmetric information
B
Balance of payments
Buffer stock
C
Carbon offsetting
Carbon tax
Circular flow
Classical unemployment
Competition Commission
Competitive tendering
Concentration ratio
Consumer surplus
Contractionary policy
CPI
Current account
Cyclical unemployment
D
Deflation
Demerit good
Direct taxes
Division of labour
E
Economic growth
Economic welfare
Exchange rate
Expansionary policy
Exports
External benefit
External cost
F
Fiscal boost
Fiscal drag
Fiscal policy
Full employment
G
Game theory
Giffen good
Gini co-efficient
Government failure
H
HDI
I
Imports
Inactivity rate
Incidence of tax
Income effect
Indirect taxes
Inferior good
Inflation
Injections
Interest rates
Investment
L
Liquidity
Liquidity trap
Long run aggregate supply
M
Marginal propensity to consume
Market failure
Maximum price
Merit good
Minimum price
Monetary policy
Monetary policy committee
Monopoly
Moral hazard
N
NAIRU
National income
National minimum wage
Net welfare gain
Net welfare loss
Nominal wages
Normal good
Normative statement
O
Oligopoly
Opportunity cost
Output gap
P
Pareto efficiency
PED
PES
Perfect competition
Phillips curve
Policy conflict
Policy instrument
Policy objective
Positive statement
PPF
Price ceiling 
Price floor
Private benefit 
Private cost
Producer surplus
Productivity
Productivity gap
Public good
Q
Quantitative easing
Quasi public good
R
Real national income
Real wages
Recession
S
Savings
Savings rate/ratio
Social benefit 
Social cost
Specialisation
Specific unit taxes
Structural unemployment
Subsidy
Substitution effect
Supply shock
Supply side policy
T
The accelerator effect
The multiplier effect
W
Wealth effect
Withdrawals
X
XED
Y
YED