What is the "invisible hand"?
What will be an ideal response?
The invisible hand is a concept articulated by Adam Smith that suggests that competitive markets are efficient. Smith discussed how self-interested buyers and sellers, without government involvement, interact with one another to bring about market efficiency. In Smith's words, market participants are "led by an invisible hand to promote an end (efficiency) which was no part of his intention."
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In the _____, all costs are _____
Fill in the blank(s) with the appropriate word(s).
Explain how each of the following events would affect the aggregate demand curve
a. Lower interest rates b. A decrease in net exports c. A decrease in the price level d. Slower income growth in other countries e. A decrease in imports What will be an ideal response?