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EMPLOYMENT RATE: The ratio of employed persons to the total civilian noninstitutionalized population 16 years old or older. Also termed the employment-population ratio, the employment rate is used as an alternative indicator of the utilization of labor resources.
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Lesson Contents
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Unit 1: The Concept |
Unit 2: Equilibrium |
Unit 3: Doing Curves |
Unit 4: Self Correction |
Unit 5: Policy Preview |
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Aggregate Market
This lesson is devoted to the exposition of the aggregate market, which combines the aggregate demand curve and the two aggregate supply curves into two related models used to analyze the macroeconomy. The main focus of this lesson is on how each of the two models, one for the short run and one for the long run, achieve equilibrium. A key conclusion is that the short-run equilibrium does not necessarily correspond to the full-employment production achieved by the long-run equilibrium. This creates recessionary and inflation gaps, which correspond to the macroeconomic problems of unemployment and inflation. - In the first unit of this lesson we ponder the basics of the aggregate market, including the importance of aggregate demand, aggregate supply, the price level, real production, unemployment, and inflation.
- Moving into the second unit, we review the concept of equilibrium and see how it relates to the aggregate market in both the short run and the long run.
- The third unit analyzes short and long-run equilibrium by combining the aggregate demand, short-run aggregate supply, and long-run aggregate supply curves.
- The topic of self-correction is examined in the fourth unit, especially how automatic shifts of the short-run aggregate supply curve can eliminate recessionary and inflationary gaps.
- The fifth and final unit of this lesson previews the use of the aggregate market to analyze business cycle stabilization policies, with particular emphasis on the time period of adjustment.
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CHANGE IN QUANTITY SUPPLIED A movement along a given supply curve caused by a change in supply price. The only factor that can cause a change in quantity supplied is price. A related, but distinct, concept is a change in supply.
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PURPLE SMARPHIN [What's This?]
Today, you are likely to spend a great deal of time watching the shopping channel seeking to buy either several orange mixing bowls or clothing for your pet dog. Be on the lookout for attractive cable television service repair people. Your Complete Scope
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Much of the $15 million used by the United States to finance the Louisiana Purchase from France was borrowed from European banks.
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"Far and away the best prize that life has to offer is the chance to work hard at work worth doing." -- Theodore Roosevelt, 26th US president
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GMB Good Merchandise Brand
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