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ECONOMY: The system of production, distribution, and consumption of goods and services that a society uses to address the problem of scarcity. The essential task of an economy is to transform resources into useful goods and services (the act of production), then distribute or allocate these products to useful ends (the act of consumption). Virtually all economies accomplish this task through a combination of decisions made through voluntary market exchanges and involuntary government rules and regulations.

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AGGREGATE EXPENDITURES DETERMINANTS

Ceteris paribus factors, other than aggregate income or production, that are held constant when the aggregate expenditures line is constructed and which cause the aggregate expenditures line to shift when they change. Some of the more important aggregate expenditures determinants are interest rates, expectations, fiscal policy, wealth, and exchange rates.

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APLS

GREEN LOGIGUIN
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Today, you are likely to spend a great deal of time at the confiscated property police auction wanting to buy either a rim for your spare tire or decorative celebrity figurines. Be on the lookout for telephone calls from long-lost relatives.
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The portion of aggregate output U.S. citizens pay in taxes (30%) is less than the other six leading industrialized nations -- Britain, Canada, France, Germany, Italy, or Japan.
"The time your game is most vulnerable is when you're ahead; never let up. "

-- Rod Laver, Tennis player

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Weak Axiom of Cost Minimization
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