If Aggregate Demand Is $2,000 Billion and Aggregate Supply Is

question 49

True/False

If aggregate demand is $2,000 billion and aggregate supply is $2,300 billion, the price level will rise.

---

Definitions:

Competitive Market

A market structure characterized by a large number of buyers and sellers, wherein no single entity has significant power to dictate market conditions.

Free Entry

is a market condition where any business can enter the industry without facing significant barriers, promoting competition.

Equilibrium Price

The price at which the quantity of goods supplied equals the quantity demanded.

Tennis Balls

Small, usually yellow, hollow rubber balls covered in a fibrous felt, used in the game of tennis.