Economic equilibrium is a state where the quantity of goods or services demanded by consumers equals the quantity supplied by producers at a specific price level. At this point, the market is in balance — there is no excess supply (surplus) or excess demand (shortage).
Posts tagged as “Price Level”
Counting the economy—often referred to as measuring or assessing the economy—is a complex but essential task.
When discussing prices and values in economics, it's essential to distinguish between nominal prices and real prices. The key difference lies in how they account for the effects of inflation.
In its simplest form, the theory states that if the amount of money in circulation increases, the price level will also increase, and vice versa, assuming other factors remain constant.
Devaluation refers to a deliberate downward adjustment in the official exchange rate of a country's currency relative to a foreign currency or a fixed standard, such as gold.
Primary goal of a central bank is to maintain a healthy and stable financial system, ensuring smooth economic growth and protecting the currency value.
This article describes in details counter unemployment policies as well as evaluates methods that governments can use to combat unemployment.
This article is about costs and benefits of unemployment. Effects, both negative and positive, of unemployment, and natural rate of unemployment.
The government can reduce inflation via monetary policy, fiscal policy or exchange rate policy. These are the major counter inflation policies.
This article identifies situations where the market system can fail causing market failure: prices too high, when prices too low, fluctuations in price.
Price is the amount of money paid by a customer to purchase a particular product – good or service, irrespective of its value.
This article is about the definition of Aggregate Demand (AD), the Aggregate Demand (AD) curve and shifts in the Aggregate Demand (AD) curve.