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AGGREGATE DEMAND: The total (or aggregate) real expenditures on final goods and services produced in the domestic economy that buyers would willing and able to make at different price levels, during a given time period (usually a year). Aggregate demand (AD) is one half of the aggregate market analysis; the other half is aggregate supply. Aggregate demand, relates the economy's price level, measured by the GDP price deflator, and aggregate expenditures on domestic production, measured by real gross domestic product. The aggregate expenditures are consumption, investment, government purchases, and net exports made by the four macroeconomic sectors (household, business, government, and foreign).

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Lesson 13: The Firm | Unit 5: The Bigger Picture Page: 22 of 24

Topic: Market Structures <=PAGE BACK | PAGE NEXT=>

Highlights of four market structures.

  • Perfect Competition
    Perfect competition is a market with a large number or relatively small firms that sell virtually identical products and that have ease of movement into and out of the market.

  • Monopoly
    Monopoly is a market with a single seller of a good with virtually no close substitutes.

  • Monopolistic Competition
    Monopolistic competition is a market with a large number or relatively small firms that sell similar but not identical products and that have ease of movement into and out of the market.

  • Oligopoly
    Oligopoly is a market with a small number or relatively large firms.

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FREE GOOD

A good that provides satisfaction of wants and needs without imposing an opportunity cost on society by preventing the production or consumption of other consumer-satisfying goods or services. Production using free goods is generally undertaken using free resources.

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APLS

BEIGE MUNDORTLE
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Today, you are likely to spend a great deal of time wandering around the downtown area hoping to buy either a turbo-powered vacuum cleaner or a battery-powered, rechargeable vacuum cleaner. Be on the lookout for the last item on a shelf.
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Junk bonds are so called because they have a better than 50% chance of default, carrying a Standard & Poor's rating of CC or lower.
"Good judgment comes from experience, and often experience comes from bad judgment."

-- Rita Mae Brown ‚ Writer

ACT
Advance Corporation Tax
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