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AGGREGATE SUPPLY DETERMINANTS: An assortment of ceteris paribus factors that affect both short-run aggregate supply and long-run aggregate supply, but which are assumed constant when the short-run and long-run aggregate supply curves are constructed. Changes in any of the aggregate supply determinants cause the short-run and long-run aggregate supply curves to shift. While a wide variety of specific ceteris paribus factors can cause the aggregate supply curves to shift, it's usually most convenient to group them into three broad categories -- resource quantity, resource quality, and resource prices.

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Lesson 9: Consumer Demand | Unit 4: The Curves Page: 19 of 22

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In this unit, you should have learned about:
  • The total utility curve as a plot of the relation between total utility and the quantity consumed.
  • The marginal utility curve as a plot of the relation between marginal utility and the quantity consumed.
  • A comparison of the total utility and marginal utility curves.
  • That marginal utility is the slope of the total utility curve.

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INVESTMENT BUSINESS CYCLES

The notion that business cycles are caused by changes in business sector investment expenditures triggered by the natural ebb and flow of market conditions. This investment explanation of business-cycle instability rests on the proposition that the seeds of each subsequent business-cycle phase are planted during the current phase. An expansion creates the conditions that cause a contraction and a contraction creates the conditions that cause an expansion. This explanation suggests a critical role for government intervention and stabilization policies to correct the business-cycle problems of inflation and unemployment.

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Today, you are likely to spend a great deal of time at a flea market hoping to buy either an ink cartridge for your printer or a rechargeable battery for your camera. Be on the lookout for the happiest person in the room.
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The first U.S. fire insurance company was established by Benjamin Franklin in 1752 in Philadelphia.
"Experience keeps a dear school, but fools will learn in no other. "

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