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5 Cards in this Set
- Front
- Back
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What is aggregate supply? |
The relationship between a nation's overall price level, and the quantity of goods and services produces by that nation's suppliers |
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What is aggregate demand? |
The quantity of goods and services produced domestically that consumers, businesses, governments and foreigners (net exports) are willing to purchase during the period of concern |
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How does the aggregate supply line look? |
The curve is upward sloping in the short run and vertical, or close to vertical, in the long run |
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How does the aggregate demand line look? |
The curve slopes downward to the right, indicating that as price levels decrease (increase), more (less) goods and services are demanded |
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How does an aggregate demand and supply diagram look? |
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