absolute advantage
this is enjoyed by a country when it is able to produce more of a good with the same amount of resources

aggregate demand
the total amount that all consumers, business firms, government agencies and foreign sectors, are willing to spend on final goods and services

aggregate demand curve
this shows the relationship between the price level and the real national product that will be demanded in the economy

aggregate expenditure function
this shows the relationship between planned aggregate expenditure and income in an economy

aggregate production function
this relates the amount of inputs (labour and capital) used by the entire business sector to the amount of final output the economy can generate

aggregate supply
the total amount of final goods and services that all businesses and the government are willing to produce

aggregate supply curve
this shows the relationship between the price level and the real national product that will be produced in the economy

anticipated inflation
correctly foreseen inflation

appreciation
the external value of a currency rises in the foreign exchange market

arbitrage
the buying of a good where its price is low and selling it where its price is high to make a gain; the process will eventually eliminate the price differential

asset demand for money
the demand for money as an asset which provides liquidity, safety and reduced risk