Examlex
An increase in the actual price level does not shift the short-run aggregate supply curve, but an expected increase in the price level shifts the short-run aggregate supply curve to the left.
Long-Run Adjustments
Long-run adjustments are changes made by firms or industries in response to shifts in market conditions over a longer period, involving variations in production levels and the entry or exit of firms.
Market Price
The present cost at which a service or asset is available for purchase or sale in a specific market.
Downward Sloping
Describes a line on a graph that shows a decrease in one variable as another variable increases, commonly used in economics to illustrate demand curves.
Representative Firms
Firms selected as typical or average examples of a broader industry or sector, often used for analysis or benchmarking.
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