MACROECONOMICS EXAM/COMPLETE SOLUTION

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Equilibrium Quantity - ANS -The quantity supplied and the quantity demanded at the equilibrium price Equilibrium Price - ANS -The price that balances quantity supplied and quantity demanded Equi... librium - ANS -A situation in which the market price has reached the level at which quantity supplied equals quantity demanded Shifts in the Demand Curve - ANS -INCOME, PRICE OF RELATED GOODS, TASTES, EXPECTATIONS, NUMBER OF BUYERS Shifts in the Supply Curve - ANS -INPUT PRICES, TECHNOLOGY, EXPECTATIONS, NUMBER OF SELLERS Supply Curve - ANS -A graph of the relationship between the price of a good and the quantity supplied Supply Schedule - ANS -A table that shows the relationship between the price of a good and the quantity supplied Law of Supply - ANS -The claim that, other things equal, the quantity supplied of a good rises when the price of the good rises Quantity Supplied - ANS -The amount of a good that sellers are willing and able to sell Complements - ANS -Two goods for which an increase in the price of one leads to a decrease in the demand for the other Substitutes - ANS -Two goods for which an increase in the price of one leads to an increase in the demand for the other Inferior Good - ANS -A good for which, other things equal, an increase in income leads to a decrease in demand Normal Good - ANS -A good for which, other things equal, an increase in income leads to an increase in demand Demand Curve - ANS -A graph of the relationship between the price of a good and the quantity demanded Demand Schedule - ANS -A table that shows the relationship between the price of a good and the quantity demanded Law of Demand - ANS -The claim that, other things equal, the quantity demanded [Show More]

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