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How is equilibrium output of final …

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How is equilibrium output of final goods determined under short run fixed price?

Posted by Geeta Goyal 6 years, 4 months ago

CBSE > Class 12 > Economics

1 answers

Sia ? 6 years, 4 months ago

Output is at its equilibrium level when quantity of output produced (AS) is equal to quantity demanded (AD). Under such circumstances, in short run (when supply is infinitely elastic at constant price) equilibrium output will be solely determined by aggregate amount of demand at that price in the economy.

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