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Producers have some notion of how much output they are willing and able to produce at various price levels. Likewise, consumers, businesses, governments, and the rest of the world have some notion of how much output they are willing and able to buy at different price levels. These forces of aggregate demand and aggregate supply confront each other in the market place. Eventually, buyers and sellers discover that only one “price-output” combination is acceptable to both sides. This is the “price-output” combination we designate as (macro) equilibrium.

At equilibrium, the aggregate quantity of goods demanded exactly equals the aggregate quantity supplied. In the absence of macro disturbances, the economy will gravitate towards equilibrium – and stay there.

Dollar expenditure (total spending) are directly related to the flow of real goods and services; the level of employment depends on the willingness of people to spend their incomes. Businesses hire workers only if the goods and services such labor produces is sufficiently strong.

In this sense we say that employers have a derived demand for labor, a demand that is derived from demands for final goods and services.

Consumer expenditures account for two-thirds of total spending in the U.S. economy. We need to determine what factors influence the rate of consumption and thus the potential for achieving full employment.

Consumption decisions are influenced by a variety of forces, including income, prices, interest rates, wealth and expectations.

ІІІ. Що б Ви могли розповісти про своє господарство?

І. Лексико-граматичний тест:

1. I hope they______this road by the time we come back next summer.

a) will have repaired c) will repair

b) would repair d) would have repaired

2. The essay is good______for the spelling mistakes.

a) apart c) unless

b) besides d) except

3. Jim suggested that I______a car.

a) should buy c) would buy

b) buying d) have bought

4. Will he arrive______time for dinner?

a) at c) to

b) with d) in

5. When oil and water mix, oil______to the top.

a) rise c) rises

b) rose d) is risen

6.______him all novelists are insignificant.

a) besides c) beside

b) near d) after

7. This blouse does not go______a pink skirt.

a) with c) up

b) to d) for

8. Are these lettuces home______or did you buy them in the market?

a) growing c) grow

b) grown d) grew

9. I don't suppose I could leave now,______?

a) do I c) could I

b) can I d) couldn't I

10. Persons swimming beyond this point do so______their own risk.

a) under c) on

b) in d) at