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DEPRECIATION, CURRENCY: The declining value of one currency, in terms of its ability to purchase goods and services. This is most often seen as a change in the exchange rate of the currency for the currencies of other nations.

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Lesson 15: Aggregate Market | Unit 2: Equilibrium Page: 9 of 22

Topic: Moving Target <=PAGE BACK | PAGE NEXT=>

The dynamic nature of the aggregate market makes the long-run equilibrium a moving target.
  • The difference between long-run and short-run equilibria is critical to the study of the macroeconomy.
  • Aggregate demand, especially investment, is volatile.
  • Aggregate supply, although somewhat predictable, involves continuous adjustments.
  • Long-run equilibrium is a perpetually pursued goal, but seldom actually reached.
As we approach the long-run equilibrium target, it has likely changed due to different economic conditions, due to changes in aggregate demand, aggregate supply, or more than likely, both.

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AGGREGATE EXPENDITURES EQUATION

An equation that summarizes the four aggregate expenditures on gross domestic product by the four macroeconomic sectors. In the study of Keynesian economics, this equation is commonly used to summarize the demand side of the macroeconomy. The aggregate expenditures equation actually comes in three different versions depending on how many of the four sectors and their expenditures are included.

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Today, you are likely to spend a great deal of time flipping through the yellow pages seeking to buy either looseleaf notebook paper or a three-hole paper punch. Be on the lookout for attractive cable television service repair people.
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A scripophilist is one who collects rare stock and bond certificates, usually from extinct companies.
"There is no point at which you can say, „Well, I'm successful now. I might as well take a nap.¾"

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