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MARKET DISEQUILIBRIUM: A state of the market that exists when the opposing forces of demand and supply do not balance out and there is an inherent tendency for change. This should be directly (and immediately) contrasted with the entries on equilibrium and market equilibrium. For the market, disequilibrium is indicated by the existence of either a surplus or a shortage. The inherent tendency to change occurs because a surplus causes the price to decline and a shortage causes the price to rise. So long as market disequilibrium persists, the price will be induced to change.

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Lesson 16: Aggregate Shocks | Unit 2: Extension Page: 4 of 21

Topic: Instability <=PAGE BACK | PAGE NEXT=>

Before getting to the graphs, here are four specific real-world-type issues to illustrate the direction that we're headed with our analysis of instability:
  • Increases in physical wealth, especially consumer durable goods and capital investment, which affect aggregate demand.
  • Changes in monetary policy that affect interest rates, which affect aggregate demand expenditures on durable goods and capital.
  • Technological advances that improve long-run and short-run aggregate supply.
  • Changes in wages and production costs that affect short-run aggregate supply.

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LAND

The naturally occurring resources used in the production of goods and services, including the land itself; the minerals and nutrients in the ground; the water, wildlife, and vegetation on the surface; and the air above. Land also includes the productive dimensions of space and accessibility. This is one of four basic categories of resources, or factors of production. The other three are labor, capital, and entrepreneurship.

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APLS

BROWN PRAGMATOX
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Today, you are likely to spend a great deal of time searching the newspaper want ads trying to buy either a birthday greeting card for your father or a T-shirt commemorating the first day of spring. Be on the lookout for florescent light bulbs that hum folk songs from the sixties.
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This isn't me! What am I?

It's estimated that the U.S. economy has about $20 million of counterfeit currency in circulation, less than 0.001 perecent of the total legal currency.
"Do what you feel in your heart to be right for you'll be criticized anyway. You'll be damned if you do and damned if you don't. "

-- Eleanor Roosevelt, first lady

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Office of the Comptroller of the Currency
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