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Explain What Force Moves the Market Back to Equilibrium If

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Essay

Explain what force moves the market back to equilibrium if the market is initially in disequilibrium in: a. the market for goods and services;
b. the market for real money balances.


Definitions:

Systematic Desensitization

A behavioral therapy technique used to reduce phobia-related anxiety through gradual exposure to the fear stimulus combined with relaxation exercises.

Progressive Relaxation

A technique that involves tightening and then relaxing each muscle group in succession to induce physical and mental relaxation.

Psychological Functioning

Encompasses the mental processes and behaviors exhibited by an individual, reflecting their mental health and well-being.

Aaron Beck

Aaron Beck is a psychiatrist widely recognized as the father of cognitive therapy, developing cognitive-behavioral therapy techniques for treating depression and other mental disorders.

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