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AMERICAN ENTERPRISE INSTITUTE: A private organization that seeks to maintain and strengthen the foundations of freedom through scholarly research, open debate, and publications. The American Enterprise Institute for Public Policy Research (as it is officially designated) promotes the principles of limited government, private enterprise, vital cultural and political institutions, and a strong foreign policy and national defense. The American Enterprise Institute (AEI) publishes dozens of books and hundreds of articles and reports each year, and an influential policy magazine called The American Enterprise. The AEI is one of the largest and most respected "think tanks" in the United States. The AEI, which was founded in 1943, is located in Washington, D.C.

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Lesson 13: Aggregate Demand | Unit 3: The Curve Page: 11 of 22

Topic: Slope <=PAGE BACK | PAGE NEXT=>

The aggregate demand curve has a negative slope.
  • This negative slope means that households, business, government and foreign sectors are inclined to increase their aggregate spending on real production if the price level decreases and decrease spending if the price level rises.
Three reasons:
  • The real-balance effect.
  • The interest-rate effect.
  • The net-export effect.

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MARGINAL COST OF SEARCH

The incremental cost incurred by additional search effort is the marginal cost of search. Marginal cost of search, also termed marginal search cost, is comparable to marginal cost of short-run production analysis. Marginal cost of search increases with an increase in search effort and is represented by the marginal cost of search curve. This is one half of the efficient information search decision. The other is marginal benefit of search.

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APLS

GRAY SKITTERY
[What's This?]

Today, you are likely to spend a great deal of time touring the new suburban shopping complex looking to buy either a wall poster commemorating the 2000 Olympics or a flower arrangement with a lot of roses for your grandmother. Be on the lookout for fairy dust that tastes like salt.
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This isn't me! What am I?

Three-forths of the gold mined each year is used to manufacture jewelry.
"God gives talent; work transforms talent into genius. "

-- Anna Pavlova, ballerina

AAXICO
American Air Export and Import Company
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