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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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CONSUMER CONFIDENCE, AGGREGATE DEMAND DETERMINANT: One of several specific aggregate demand determinants assumed constant when the aggregate demand curve is constructed, and which shifts the aggregate demand curve when it changes. An increase in consumer confidence causes an increase (rightward shift) of the aggregate demand curve. A decrease in consumer confidence causes a decrease (leftward shift) of the aggregate demand curve. Other notable aggregate demand determinants include interest rates, federal deficit, inflationary expectations, and the money supply.;aggregate demand determinants;interest rates, aggregate demand determinant;federal deficit, aggregate demand determinant;inflationary expectations, aggregate demand determinant;money supply, aggregate demand determinant;exchange rates, aggregate demand determinant;physical wealth, aggregate demand determinant;financial wealth, aggregate demand determinant;change in aggregate demand;change in aggregate expenditures;aggregate demand shifts;slope, aggregate demand curve;aggregate supply determinants;aggregate demand;aggregate expenditures;aggregate demand and market demand;determinants;gross domestic product;consumption expenditures;investment expenditures;government purchases;net exports;price level;real production;GDP price deflator;real gross domestic product

     See also | AS-AD analysis | aggregate market | business cycles | circular flow | Keynesian economics | monetary economics | aggregate market shocks | Consumer Confidence Index | Index of Consumer Sentiment | buyers' preferences, demand determinant |


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MARKET ADJUSTMENT

The economic analysis of changes in market equilibrium caused by changes in any of the five demand determinants and/or the five supply determinants. Market adjustment comes in one of eight varieties, given that the two curves comprising the market (demand curve and supply curve) can either increase or decrease, individually or simultaneously. Four adjustments involve a shift of EITHER the demand curve OR the supply curve. The other four adjustments involve shifts of BOTH the demand curve AND the supply curve.

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