Examlex
The figure below shows the relationship between an economy's potential output,price level,and real GDP.According to those who favor a passive approach to policy,the economy will attain equilibrium at potential output when:
Figure 16.1
Quantity Demanded
The amount (number of units) of a product that a household would buy in a given period if it could buy all it wanted at the current market price.
Breaks Even
Achieves a situation where there is no profit or loss, synonymous with the concept of the break-even point but phrased differently.
Perfectly Competitive
Describes a market structure where no single buyer or seller has market power, products are homogeneous, information is freely available, and there is free entry and exit of firms.
Market Demand Curve
A graphical representation of the quantity demanded at various prices by all consumers in the market.
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