Archives: Terms

Definition of the AD-IA Model The Aggregate Demand-Aggregate Supply (AD-AS) model—often referred to as AD-IA in certain contexts where IA represents the inflation-adjusted supply—is a fundamental model used in macroeconomics to explain various economic phenomena, including inflation, recessions, and economic growth. At its core, the model illustrates how the total […]

Definition of the AD–AS Model The Aggregate Demand-Aggregate Supply (AD–AS) model is a fundamental concept in macroeconomics that represents the total demand and total supply for an economy’s goods and services at any given point in time. The model helps portray the economic effects of various events and policy choices […]

Definition of Adaptive Expectations Adaptive expectations refer to the economic theory that individuals form their expectations for the future based on past experiences and adjust those expectations as new information becomes available. This concept suggests that people’s predictions about future economic variables, such as inflation rates or interest rates, are […]

Definition of the Accelerator Effect The Accelerator Effect refers to an economic concept that describes how an increase in national income or demand leads to a proportionally larger increase in investment spending by firms. This investment is primarily on capital goods, such as machinery and equipment, which are necessary to […]

Definition of 403(b) Retirement Plan A 403(b) plan is a retirement savings plan available to employees of public education organizations, some non-profit employers, cooperative hospital service organizations, and self-employed ministers in the United States. It serves a similar purpose to the more widely known 401(k) plans available to private sector […]

Definition of 401(k) Retirement Plan A 401(k) plan is a tax-advantaged, employer-sponsored retirement savings account for employees. Named after a section of the U.S. Internal Revenue Code, 401(k) plans allow employees to save and invest a portion of their paycheck before taxes are taken out. Taxes aren’t paid until the […]

Definition of 401(a) Retirement Plan A 401(a) plan is a type of retirement plan primarily offered by government and non-profit employers to their employees. Unlike the more commonly known 401(k) plans available in the private sector, 401(a) plans allow employers significant flexibility in terms of contributions. They can be either […]

Who is Zvi Griliches? Zvi Griliches was an economist and professor known for his contributions to the field of productivity and innovation. He was born in Lithuania in 1930 and immigrated to the United States in 1947. Griliches received his Ph.D. in economics from the University of Chicago in 1957 […]

Definition of Zoning Ordinance A zoning ordinance is a local law or regulation that divides a municipality into different zones or districts, each with specific land use restrictions and requirements. These regulations dictate how land can be used within each zone, such as residential, commercial, industrial, or agricultural use. Zoning […]

Definition of ZEW Indicator of Economic Sentiment The ZEW Indicator of Economic Sentiment is a leading economic indicator that measures the sentiment and expectations of financial market experts regarding the economic outlook for a specific country, usually Germany. It is published monthly by the ZEW – Leibniz Centre for European […]