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Acoustic music is music played without the use of electrical equipment. While there are some guitar players who plug their guitars into an amplifier so that they can be heard, but the music is still considered to be acoustic. The use of a microphone for the same purpose is also still considered to be acoustic.

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For hundreds of years musicians have made music without the help of any technology including amps and microphones. In those days there was no need to specify the type of music that was being played because it was all acoustic. Even once electricity was commonly available there were many musicians and bands did not make use of the electricity except for the occasional microphone so that the singer could be heard above the rest of the band or in a crowded noisy room. It wasn't until the age of rock and roll that electric instruments were used on a regular basis.
With the exception of the rock bands acoustic music is widely played and heard today ranging from the amateur musician to the professional symphonies. In groups like folk music circles and Irish music sessions the use of electric musical instruments are not even allowed. These sessions are strictly acoustic. In some cases the players do not even like the use of loud percussion instruments because it interferes with the other players being able to hear the music.
A great many of the popular bands today would not be able to put on a show if the electricity were to go off. And in this digital age and computer aided music that can be made without the use of any traditional music instruments at all it is getting hard to find music crafted purely by any true instruments. But it is still possible to find a band like the Asylum Street Spankers or The Clark Brothers who play acoustic instruments. Professional folk musicians like Pete Seeger and the Guthries still play the traditional acoustic guitar.