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I have a triangular yard whose lengths measure 50, 60, and 70 feet. I want to fertilize my lawn with bags of fertilizer that cover 400 square feet each. How many bags of fertilizer will I need to buy?
Price Index
A number that shows the average price of products; changes in a price index over time show changes in the economy’s average price level.
Price Level
A measurement of the average of current prices across the entire spectrum of goods and services produced in the economy.
Aggregate Demand
The relationship between the economy’s price level and aggregate output demanded, with other things constant.
Equilibrium Output
The level of output at which the quantity of goods produced equals the quantity of goods demanded.
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