Equilibrium Price and Quantity Are Determined By

question 170

Multiple Choice

Equilibrium price and quantity are determined by:

• A)demand.
• B)supply.
• C)government regulations.
• D)both supply and demand.

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Definitions:

Aggregate Demand

The complete need for goods and services across an economy at an established price level within a specific period.

Government Spending

The total amount of money spent by the government on various services, infrastructure projects, and welfare programs.

Marginal Propensity

A measure of how much an individual's or household's consumption changes when their income changes by one unit.

Multiplier

In economics, it refers to the factor by which gains in total output are greater than the change in spending that caused it, often associated with fiscal policy.