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increasing opportunity costs law (D2) The TRADE-OFF between an increasing amount of one good and an increasing amount of another in an economy with FULL EMPLOYMENT. The opportunity COSt of having more of one good is the increasing cost of losing quantities of the other good. This is the principle underlying a PRODUCTION POSSIBILITY FRONTIER.
deflationary gap (E6)<br />The excess of AGGREGATE SUPPLY over AGGREGATE DEMAND of a national economy. This overall situation of an economy at less than FULL EMPLOYMENT has often encouraged KEYNESIAN policies of deficit spending.
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currency basket (F3)<br />A combination of currencies to produce a common unit, e.g. the Ecu. The values of these currencies are weighted, e.g. by shares in world trade or the gross national products of the countries participating.
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