Examlex
Holding small amounts of liquid assets could cause an FI to be unable to meet the claims of liability holders.
Price Level
An index of the average prices of goods and services throughout an economy, indicating the cost of living or inflation rate.
Expansionary Gap
A situation where the actual level of output in an economy exceeds the full employment level of output, often leading to inflation.
Short-Run
A period in which not all factors of production can vary, allowing for some level of fixed inputs or conditions.
Aggregate Supply Curve
A graphical representation showing the relationship between the overall price level in the economy and the total output produced by firms.
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