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SAVING-INVESTMENT MODEL: A model used to identify equilibrium in Keynesian economics based on injections (investment, I) and leakages (saving, S) for the two basic sectors (household and business). Equilibrium is achieved at the intersection of the saving line, S, and the investment line, I.

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Lesson 23: Factor Market Equilibrium | Unit 2: Market Control Page: 8 of 24

Topic: Buying Side <=PAGE BACK | PAGE NEXT=>

  • Here's a list of resource market structures that have buying-side market control:

    • Perfect competition: This has exactly the same name as the selling-side market structure because perfect competition is really based on large numbers of both buyers and sellers exchanging an identical production.

    • Monopsonistic competition: This is the buying-side equivalent of monopolistic competition.

    • Oligopsony: is a market structure with a small number of relatively large firms dominating the market for a factor.

    • Monopsony: is a market structure with a single firm buying all output.


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KEYNESIAN DISEQUILIBRIUM

The state of the Keynesian model in which aggregate expenditures are not equal to aggregate production, which results in an imbalance that induces a change in aggregate production. In other words, the opposing forces of aggregate expenditures (the buyers) and aggregate production (the sellers) are out of balance. At the existing level of aggregate production, either the four macroeconomic sectors (household, business, government, and foreign) are unable to purchase all of the production that they seek or producers are unable to sell all of the production that they have.

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Today, you are likely to spend a great deal of time waiting for visits from door-to-door solicitors wanting to buy either clothing for your kitty cats or a set of luggage without wheels. Be on the lookout for slow moving vehicles with darkened windows.
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In the late 1800s and early 1900s, almost 2 million children were employed as factory workers.
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