Which of the Following Is the Correct Way to Describe

question 167

Multiple Choice

Which of the following is the correct way to describe equilibrium in a market?

• A)At equilibrium, demand equals supply.
• B)At equilibrium, quantity demanded equals quantity supplied.
• C)At equilibrium, market forces no longer apply.
• D)Equilibrium is a tendency for price to change, a state of perpetual motion.
• E)At equilibrium, the "fairest" price for output is achieved.

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Definitions:

Price Level

The average of current prices across the entire spectrum of goods and services produced in the economy, indicating the general level of inflation or deflation.

Financial Intermediaries

Institutions that act as middlemen between savers and borrowers, helping to channel funds from those with surplus capital to those needing capital.

Print Money

The process by which a country's central bank creates new money, typically leading to an increase in the monetary base, used metaphorically for expansionary monetary policy.

Depository Institution

A financial institution that accepts deposits from the public and provides credit facilities and other financial services.