If,at the Prevailing Price Level,the Aggregate Quantity Supplied Exceeds the Aggregate

question 76

True/False

If,at the prevailing price level,the aggregate quantity supplied exceeds the aggregate quantity demanded,the price level will tend to fall.

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Definitions:

Laissez Fair Capitalism

An economic system where private parties are free from government intervention in their economic decisions.

Monopolistic Competition

The market structure that exists when there are fewer businesses than in a pure-competition environment and the differences among the goods they sell are small.