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RELATIVELY ELASTIC: An elasticity alternative in which relatively small changes in price cause relatively large changes in quantity. In other words, quantity is very responsive to price. Relatively elastic should be compared with other elasticity alternatives--relatively inelastic, perfectly inelastic, perfectly elastic, and unit elastic.
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Lesson 14: Aggregate Supply | Unit 5: Connections
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Page: 18 of 20
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The aggregate market has a self-correcting mechanism that ensures the long-run full-employment equilibrium will be reached by itself, without government policies. The predicament: - Long run means full employment and flexible prices.
- Short run means price rigidity without full employment.
The automatic, self-correcting solution:- Disequilibrium in the labor market exerts pressure on wages to correct the imbalance, even with wage rigidity.
- This automatically moves us from the short run to the long run and full-employment equilibrium.
The critical question: How long does the self-correcting mechanism take? Days? Months? Years?
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MARKET The organized exchange of commodities (goods, services, or resources) between buyers and sellers within a specific geographic area and during a given period of time. Markets are the exchange between buyers who want a good (the demand-side of the market) and the sellers who have it (the supply-side of the market).
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ORANGE REBELOON
[What's This?]
Today, you are likely to spend a great deal of time lost in your local discount super center wanting to buy either car battery jumper cables or a dozen high trajectory optic orange golf balls. Be on the lookout for letters from the Internal Revenue Service.
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Rosemary, long associated with remembrance, was worn as wreaths by students in ancient Greece during exams.
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"The road to success is always under construction. " -- Lily Tomlin, Actress
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IAB
Inter-American Bank
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