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EXCHANGE RATES, AGGREGATE EXPENDITURES DETERMINANT: One of several specific aggregate expenditures determinants assumed constant when the aggregate expenditures line is constructed, and that shifts the aggregate expenditures line when it changes. An increase in the exchanges rates causes an increase (upward shift) of the aggregate expenditures line. A decrease in the exchanges rates causes a decrease (downward shift) of the aggregate expenditures line. Other notable aggregate expenditures determinants include consumer confidence, federal deficit, inflationary expectations, and interest rates.

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Lesson 8: Market Shocks | Unit 1: Adjustments Page: 1 of 20

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In this lesson we use the market as a tool to understand our economic world, specifically, we see how markets move from one equilibrium to another.

One goal of this lesson:

  • Use the market model to examine the why and how of market shocks, adjustments to a new equilibrium.
Why do we do this?
  • Markets in the real world do not remain at the same equilibrium forever. Markets move. Prices and quantities change.
  • To understand real world changes, we need to analyze what happens to the market when a shock disrupt it.

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    GOVERNMENT ENTERPRISES

    Government owned and operated productive activities that operate much like private sector firms. They hire resources and purchase other inputs, then produce goods sold through markets. In some cases, government enterprises compete directly with private firms. One common example of a government enterprise is a city-operated electrical generation and distribution system. In some cities, this service is provided by private, for-profit, businesses. In other cities it is provided by government. Other examples of government enterprises include urban transportation systems, parks and recreational facilities, and communication systems.

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    APLS

    GRAY SKITTERY
    [What's This?]

    Today, you are likely to spend a great deal of time at the confiscated property police auction seeking to buy either handcrafted decorations to hang on your walls or throw pillows for your bed. Be on the lookout for deranged pelicans.
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    This isn't me! What am I?

    On a typical day, the United States Mint produces over $1 million worth of dimes.
    "Being defeated is only a temporary condition; giving up is what makes it permanent."

    -- Marilyn vos Savant, Author

    ACCR
    Annual Cost of Capital Recovery
    A PEDestrian's Guide
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