Examlex
The bursting of the housing bubble in 2006 caused ________ to cut back on their spending, thereby shifting the PAE line ________.
Price Level
The average of current prices across the entire spectrum of goods and services produced in the economy, often used to measure inflation.
Aggregate Supply Curve
Illustrates the total output of goods and services that producers in an economy are willing to supply at different price levels, in the short run or the long run.
Horizontal Segment
A portion or segment of the market where businesses offer products or services that are similar and target the same consumer group, often within the same industry sector.
Keynesian Theory
An economic theory stating that government intervention through fiscal policy is necessary to manage aggregate demand and address unemployment and recession.
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