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AGGREGATE DEMAND DETERMINANTS: An assortment of ceteris paribus factors that affect aggregate demand, but which are assumed constant when the aggregate demand curve is constructed. Changes in any of the aggregate demand determinants cause the aggregate demand curve to shift. While a wide variety of specific ceteris paribus factors can cause the aggregate demand curve to shift, it's usually most convenient to group them into the four, broad expenditure categories -- consumption, investment, government purchases, and net exports. The reason is that changes in these expenditures are the direct cause of shifts in the aggregate demand curve. If any determinant affects aggregate demand it MUST affect one of these four expenditures.
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Lesson 6: Market Supply | Unit 2: Law of Supply
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Page: 5 of 19
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The law of supply is the basic principle underlying supply. A definition: The law of supply is a direct relationship between supply price and the quantity supplied, ceteris paribus. - Direct relationship means that people sell more of a good if the price is higher and less if the price is lower.
- The law of supply is not as rigid as the law of demand. The price and the quantity supplied are not always directly related. Higher prices could cause an increase or a decrease in the quantity supplied.
Ceteris paribus is also important to the law of supply.- Ceteris paribus means other things remain unchanged.
- Law of supply applies exclusively to the relationship between supply price and quantity supplied.
- All other things that can affect supply must remain constant to avoid distorting this relationship.
- Because supply is affected by many factors other than price, the price/quantity supply relationship can get lost when other things change.
- Other factors that affect supply are called supply determinants.
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LEGAL BUSINESS ORGANIZATIONS The alternative ways in which a business or firm can be legally organized. The three primary alternatives are proprietorship, partnership, and corporation. Differences among three are mainly based on: (1) number of owners and (2) the liability of the owners. A proprietorship has a single owner with unlimited liability. A partnerships has two or more ownership with unlimited liability. The owners of a corporation have limited liability.
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WHITE GULLIBON
[What's This?]
Today, you are likely to spend a great deal of time at a going out of business sale looking to buy either a bookshelf that will fit in your closet or a birthday greeting card for your grandfather. Be on the lookout for mail order catalogs with hidden messages.
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The portion of aggregate output U.S. citizens pay in taxes (30%) is less than the other six leading industrialized nations -- Britain, Canada, France, Germany, Italy, or Japan.
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"Old age isn't so bad when you consider the alternative. " -- Cato, Roman orator
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