__________ Is the Economic System Based on Private Ownership of the Means

question 25

Short Answer

__________ is the economic system based on private ownership of the means of production, in which prices are set and goods distributed through a market.

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Definitions:

Crowding-out Effect

A situation where increased government spending leads to a reduction in private sector investment due to higher interest rates.

Aggregate Demand

The total amount of goods and services demanded in the economy at a given overall price level and in a given time period.

Aggregate Demand

The total demand for all goods and services in an economy at a given overall price level and at a given time.

Consumption

The use of goods and services by households.