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After a Shift in the Aggregate Demand Curve,which Variable Adjusts

question 51

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After a shift in the aggregate demand curve,which variable adjusts to restore general equilibrium?


Definitions:

Unit Elastic

A situation in economic demand or supply where a change in price leads to an equal proportional change in the quantity demanded or supplied.

Price Elasticity

A metric that shows the responsiveness of the quantity of a product demanded when its price changes.

Quantity Demanded

The amount of a good or service that consumers are willing and able to purchase at a given price.

Price Elasticity

An indicator of how the amount of a product that is bought or provided reacts to variations in its cost.

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