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MARKET CLEARING: The price and quantity that equates the quantity demanded and quantity supplied; equates the demand price and supply price; and achieves market equilibrium. In other words, the market is "cleared" of shortages and surpluses.

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Lesson 21: Factor Demand | Unit 5: Taking Stock Page: 23 of 24

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  • A few topics you can look forward to in other lessons.

    • Factor Supply: Factor demand is only one side of the factor market. The other side, as you might suspect, is factor supply.

    • Factor Market Equilibrium: The balance of factor demand and factor supply in the factor market, like any market, generates equilibrium.

    • Labor Markets: Labor represents the most widely used factor service throughout the economy.


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SLOPE, INVESTMENT LINE

The positive slope of the investment line is also termed the marginal propensity to invest (MPI). This slope is greater than zero but less than one, reflecting induced investment. The slope of the investment line affects the slope of the aggregate expenditures line and thus also affects the magnitude of the multiplier process.

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More money is spent on gardening than on any other hobby.
"always remember an epitaph which is in the cemetery at Tombstone, Arizona. It says: „Here lies Jack Williams. He done his damnedest.¾ I think that is the greatest epitaph a man can have ‚ When he gives everything that is in him to do the job he has before him. That is all you can ask of him and that is what I have tried to do. "

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