Please provide a summary of these key points Bes of Economics - LyryxLy Cl-Principles-of-Economics-2021 Xextbooks/CURTIS PRIN_COM_2/marketing/Cl-Principles-of-Economics-2021A.pdfng PDF files?Set as default+ ?Page viewA Read aloudAdd textDrawAggregate demand: aggregate expenditure (AE) at different price levels when all other con-ditions are constant.GDP(Y): the national accounts measure of the sum of actual expenditure and income in theeconomy.Aggregate expenditure (AE): planned expenditure by business and households.Induced expenditure: planned expenditure that is determined by current income and changeswhen income changes.Marginal propensity to consume (mpc = c = AC/AY): the change in consumption expendi-ture caused by a change in income.Marginal propensity to import (mpm = m = AIM/AY): the change in imports caused by achange in income.Induced expenditure (cm)Y: planned consumption and imports expenditures that changewhen income changes.Autonomous expenditure (A): planned expenditure that is not determined by current income.Aggregate expenditure (AE): the sum of planned induced and autonomous expenditure inthe economy.Short-run equilibrium output: Aggregate expenditure current output are equal (Y = AE).Unplanned changes in business inventories: indicators of disequilibrium between plannedand actual expenditures - incentives for businesses to adjust levels of employment and outputMultiplier (AY/AA): the ratio of the change in equilibrium income Y to the change in au-tonomous expenditure A that caused it.O3

Macroeconomics is the study of large-scale or general economic factors such as interest rates and…

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Economics

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MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter11: Managing Aggregate Demand: Fiscal Policy

Section: Chapter Questions

Problem 2TY

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Please provide a summary of these key points

Bes of Economics - Lyryx
Ly Cl-Principles-of-Economics-2021 X
extbooks/CURTIS PRIN_COM_2/marketing/Cl-Principles-of-Economics-2021A.pdf
ng PDF files?
Set as default
+ ?
Page view
A Read aloud
Add text
Draw
Aggregate demand: aggregate expenditure (AE) at different price levels when all other con-
ditions are constant.
GDP(Y): the national accounts measure of the sum of actual expenditure and income in the
economy.
Aggregate expenditure (AE): planned expenditure by business and households.
Induced expenditure: planned expenditure that is determined by current income and changes
when income changes.
Marginal propensity to consume (mpc = c = AC/AY): the change in consumption expendi-
ture caused by a change in income.
Marginal propensity to import (mpm = m = AIM/AY): the change in imports caused by a
change in income.
Induced expenditure (cm)Y: planned consumption and imports expenditures that change
when income changes.
Autonomous expenditure (A): planned expenditure that is not determined by current income.
Aggregate expenditure (AE): the sum of planned induced and autonomous expenditure in
the economy.
Short-run equilibrium output: Aggregate expenditure current output are equal (Y = AE).
Unplanned changes in business inventories: indicators of disequilibrium between planned
and actual expenditures - incentives for businesses to adjust levels of employment and output
Multiplier (AY/AA): the ratio of the change in equilibrium income Y to the change in au-
tonomous expenditure A that caused it.
O
3

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