What's it: An adverse economic shock is a sudden, unexpected, and dramatic change in aggregate supply and demand, hurting the economy. For
Macroeconomic Equilibrium
Economic Shock: Types, Causes, Impacts
What's it: An economic shock is a sudden and unexpected significant change in an economy's output due to changes in external factors. Shocks
Long-Run Macroeconomic Equilibrium and Its Explanation
What's it: Long-run macroeconomic equilibrium occurs when the aggregate demand curve intersects the short-run aggregate supply curve at the point
Short-run Macroeconomic Equilibrium and Its Implications for the Economy?
What's it: A short-run macroeconomic equilibrium occurs when the aggregate demand curve and the short-run aggregate supply curve intersect. It
Supply Shock: Examples, Causes, Effects
What's it: A supply shock is a sudden and unexpected event causing a dramatic change in output. It can be positive or negative. It is positive if
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Long-Run Aggregate Supply: Its Curve And Influencing Factors
What's it: Long-run aggregate supply (LRAS) refers to the total output produced in the economy when all inputs are variable. Wages and other
Invisible Hand: Concept and Criticism
What's it: Invisible hand refers to the forces that move the market toward equilibrium when there is no intervention. These forces are entirely
Macroeconomic Equilibrium: Short Run Vs. Long Run
What's it: A macroeconomic equilibrium occurs when aggregate supply equals aggregate demand. Aggregate supply represents the total output of
Full Employment: Meaning, Implication for Unemployment
What's it: Full employment means an economy is fully utilizing its productive resources. At this condition, the economy produces at its potential
Business Cycle: Its 4 Phases, Characteristics, and Effects
What's it: The business cycle refers to the periodic but irregular rise and fall of an economy's output. We can trace the phase from economic
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Aggregate Demand: Formula, Components and Determinants
What's it: Aggregate demand (AD) is the sum of demand for goods and services in the economy at a given price level and a certain period. In the open
Aggregate Supply: Types, Curves, and Determinants
What it's: Aggregate supply (AS) is an economy's total goods and services. It behaves differently in the very short run, short run, and long run.
Very Short-Run Aggregate Supply: Its Curve and a Brief Explanation
What's it: Very short-run aggregate supply refers to the aggregate supply in which firms change the output to a limited extent without changing