The Lack of an Established Governing System Creates the Need

question 43

True/False

The lack of an established governing system creates the need for informal power structures that regulate behavior and conduct,set and promote ideals,and engage in commerce and trade.

---

Definitions:

Equilibrium Real GDP

The level of Gross Domestic Product where aggregate supply equals aggregate demand, adjusted for inflation.

Aggregate Supply Curve

A graphical representation showing the relationship between the total production of goods and services and the price level for those goods and services.

AS Curve

Short for Aggregate Supply Curve, it represents the total supply of goods and services that firms in an economy are willing to sell at a given price level.

Maximum Output Level

The highest level of output that a company can produce in a given period without increasing the input.