Economists Use the Term Demand to Summarize

question 128

Multiple Choice

Economists use the term demand to summarize

• A) how changes in price affect consumers' purchasing power.
• B) how the concept of scarcity applies to the world.
• C) the influence of factors other than price on the quantity we want to buy.
• D) the behaviour of irrational consumers interacting with government in the marketplace.
• E) the activities of profit-oriented businesses.

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Definitions:

Long-run Phillips Curve

A concept suggesting that in the long term, there is no trade-off between inflation and unemployment, implying that efforts to reduce unemployment will not lead to higher inflation in the long run.

Long-run Phillips Curve

A graphical representation suggesting that in the long run, there is no trade-off between inflation and unemployment.

Higher Inflation

Higher Inflation occurs when there is a sustained increase in the general price level of goods and services, reducing purchasing power over time.

Long Run

A period in economics where all inputs can be adjusted, and companies can change all factors of production.