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ratchet effect (E2)<br />An upward shift in aggregate demand. This higher level of consumption and investment is permanent, preventing an economy in recession from reverting to a level of output lower than at the beginning of the previous expansion. The RELATIVE INCOME HYPOTHESIS asserts that when incomes are failing, consumption will not fall by the same amount as it will be difficult for households to make a swift adjustment to a new standard of living.
<strong>MASFAA</strong> – Midwest Association of Student Financial Aid Administrators. MASFAA includes the following states: Missouri, Illinois, Indiana, Iowa, Michigan, Minnesota, Ohio, West Virginia, and Wisconsin.
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firm (L2)<br />1 The basic unit for orgamzmg production which performs the crucial role of linking product, factor and money markets.<br /> 2 An administrative organization utilizing a pool of resources.<br /> 3 A business organization under a single management with one or more ESTABLISHMENTS.
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