The intersection of the aggregate demand curve and aggregate supply curve gives the equilibrium in the economy. The equilibrium price level of the economy is determined by the intersection of both curves.Answer and Explanation: The sum of all the goods produced and sold by all the firms in ...
The aggregate demand curve is a macroeconomic concept that summarizes the total demand for all goods and services in an economy...
The aggregate supply curve represents the output of the economy under a series of general price levels, that is, the total supply curve represents the trajectory of the total output of the firms in the economy, which is willing and able to supply, as the price changes. The aggregate supply ...
A producer surplus is an area above the supply curve and below the market price. It means the area that comes under the supply curve is known as producer surplus. It is the difference between willingness to receive and actually receive by a producers. ...
The market supply curve depicts the output levels that enterprises in the marketplace manufacture in average corresponding to distinct values of the market cost price. Explore the meaning of Market Supply Curve at BYJU'S.
Aggregate demand is the demand for all goods and services in an economy. The law of demand says people will buy more when prices fall. The demand curve measures the quantity demanded at each price. The five components of aggregate demand are consumer spending, business spending, government spend...
4。Of the following theories, which is consistent with a vertical long-run aggregate supply curve? a. the sticky-wage theory b. misperceptions theory c. both the sticky-wage and misperceptions theories. ___ 5。
The equilibrium between aggregate demand and aggregate supply is balanced when the aggregate supply is equal to the total demand. At the equilibrium point, the product market and money market that decide the aggregate demand and the labor market that determines the total supply are in equilibrium ...
A yield curve, which is a popular recession indicator, is said to be inverted when long-term interest rates drop below short-term rates.
The term aggregate supply refers to the supply of products thatcompaniesproduce and plan to sell at a certain price in a given period. Put simply, it refers to the finished goods that consumers purchase during a specified time. Aggregate supply is represented by the aggregate supply curve. Ther...