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What is the point at which the quantity of aggregate goods and services demanded equals the quantity produced?
Wiki User
∙ 11y ago
This is when demand and supply are said to be in "Equilibrium" when both demand and supply are exactly the same.
Hopes this helps!
Akmed Ommbejumba
Wiki User
∙ 14y ago
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What will happen if Aggregate demand increases and aggregate supply decreases?
An increase in aggregate demand and a decrease in aggregate supply will result in a shortage: there will be more goods and services demanded than that which is being produced.
What is meant by aggregate demand and aggregate supply?
Aggregate simply means a collection of things. So aggregate demand is the total quantity of an economy's final good and services demanded at different price levels. Aggregate supply is the total quantity of final goods and services that firms in the economy want to sell at different price levels. These are used primarily in Macroeconomics to calculate how the economy is doing as a whole.
What are the components of Aggregate Supply?
aggregate supply is the total number of good and services produced in a country. The components are GOODS and SERVICES
What happen to most goods and services when there is an increase in price?
When there is an increase in price, there is a decrease in the quantity demanded.
What is the total value of goods and services produced in a given period of time called?
aggregate production
What will happen if Aggregate demand increases and aggregate supply decreases?
An increase in aggregate demand and a decrease in aggregate supply will result in a shortage: there will be more goods and services demanded than that which is being produced.
What will happen if Aggregate demand increases and aggregate supply increases?
An increase in aggregate demand and a decrease in aggregate supply will result in a shortage: there will be more goods and services demanded than that which is being produced.
What is meant by aggregate demand and aggregate supply?
Aggregate simply means a collection of things. So aggregate demand is the total quantity of an economy's final good and services demanded at different price levels. Aggregate supply is the total quantity of final goods and services that firms in the economy want to sell at different price levels. These are used primarily in Macroeconomics to calculate how the economy is doing as a whole.
What are the components of Aggregate Supply?
aggregate supply is the total number of good and services produced in a country. The components are GOODS and SERVICES
What happen to most goods and services when there is an increase in price?
When there is an increase in price, there is a decrease in the quantity demanded.
What is the total value of goods and services produced in a given period of time called?
aggregate production
What goods and services should produce?
Most customer demanded product should be produced with your capacity.
What is the total value of all goods services produced in a given period of time called?
aggregate production
Process of price determination?
Price is determined at the point of equilibrium. Equilibrium is a point of balance. In other words, equilibrium is the point at which quantity demanded and quantity supplied is equal. That is, market equilibrium refers to a condition where a market price is established through competition such that the amount of goods or services sought by buyers is equal to the amount of goods or services produced by sellers. This price is called equilibrium price.
What is the definition of perfect elastic?
AKA Infinite elasticity of demand. Means a change in price will not effect quantity demanded. Such as necessary goods/services to survival.
What do economists mean when they say that quantity demanded and price have an inverse relationship?
The law of demand states that when the price of a good or services falls, consumers buy more of it. As the price of a good or service increases, consumers usually buy less of it. In other words, quantity demanded and price have an inverse, or opposite, relationship.
What equilibrium price and equilibrium quantity?
equilibrium price and equilibrium quantity?: equilibrium price: When the price is above the equilibrium point there is a surplus of supply The market price at which the supply of an item equals the quantity demanded Price at which the quantity of goods producers wish to supply matches the quantity demanders want to purchase sa madaling salita supply=demand=price equilibrium quantity: Amount of goods or services sold at the equilibrium price The quantity demanded or supplied at the equilibrium price. supply=demand ayos?
