Refer to Figure 11.1.Assume aggregate demand is represented by AD1 and full employment output is $6.0 trillion.The equilibrium level of income is
Definitions:
Price-Taker Industry
A sector in which businesses must accept the prevailing prices in the market as they have no influence over setting them.
Marginal Costs
The additional cost incurred by producing one more unit of a product or service.
Average Total Cost
The total cost of production divided by the quantity of output produced.
Market Price
The current price at which an asset or service can be bought or sold in a particular marketplace.
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