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kow [346]
3 years ago
6

How does a market economy operate?

Business
1 answer:
Tanya [424]3 years ago
5 0

Answer:

The principle of market economy dictates that producers and sellers of goods and services will offer them at the highest possible price that consumers are willing to pay for goods or services. When the level of supply meets the level of demand, a natural economic equilibrium is achieved.

Explanation:

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In a neoclassical economy, assume that the government lowers both government spending and taxes by $100 billion. If the marginal
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