|
|
NATIONAL BANKS: Traditional banks that are chartered by the Comptroller of the Currency and are automatically members of the Federal Reserve System. The contrast to national banks are state banks, which are chartered by one of the fifty states. National banks tend to larger than state banks and whether justified or not tend to be slightly more prestigious. In the modern economy this distinction is less important than it was a few decades bank when state banks were subject to lesser state regulations than national banks.
Visit the GLOSS*arama
|
|
|
|
|
Lesson 8: Market Shocks | Unit 4: Double Shifts
|
Page: 13 of 20
|
|
Topic:
More Demand and More Supply
|
|
|
Market equilibrium is disrupted if both the demand (higher income) and supply (technological breakthrough) curves shift.- An increase in demand creates a shortage. Price and quantity tend to increase.
- An increase supply creates a surplus. Price declines and quantity increases.
- The combined effect is an obvious increase in quantity but a questionable change in price.
- At the new equilibrium the price is indeterminant.
- If demand shifts relatively more than supply, price is higher.
- If demand shifts relatively less than supply, price is lower.
|
|
|
|
|
|
|
AGGREGATE SUPPLY DECREASE, LONG-RUN AGGREGATE MARKET A shock to the long-run aggregate market caused by a decrease in aggregate supply, resulting in and illustrated by a leftward shift of the long-run aggregate supply curve. A decrease in aggregate supply in the long-run aggregate market results in an increase in the price level and a decrease in real production. The level of real production resulting from the shock is a smaller level of full-employment real production.
Complete Entry | Visit the WEB*pedia |
|
|
|
In the late 1800s and early 1900s, almost 2 million children were employed as factory workers.
|
|
|
"Plans are only good intentions unless they immediately degenerate into hard work." -- Peter Drucker, management consultant
|
|
ICC
International Chamber of Commerce
|
|
|
Tell us what you think about AmosWEB. Like what you see? Have suggestions for improvements? Let us know. Click the User Feedback link.
User Feedback
|
|
