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1. The quantity of output supplied at different price levels is represented by the a. production function. b. aggregate demand curve. c. aggregate supply curve. d. aggregate expenditures curve.
Aggregate supply curve
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If desired aggregate expenditures are less than actual output, aggregate output will decrease.
Explain in detail: True False or Uncertain
If desired aggregate expenditures are less than actual output, aggregate output will decrease, because there is an overproduction of the output, but in equilibrium the aggregate expenditures should be equal...
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Suppose that for a two sector model, the marginal propensity to consume (mpc) is 90%. What is the induced consumption expenditure equal to ?
induced consumption expenditure = 0.9*Income
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“A change in the price level shifts the aggregate expenditures curve, but not the aggregate demand curve.”
A change in the price level does not shift the aggregate demand curve. It simply represents a movement along the curve, because there is an inverse relationship between the price...
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Explain the following carefully: “A change in the price level shifts the aggregate expenditures curve, but not the aggregate demand curve.” Include graphs as part of the analysis
An increase in price level will mean higher aggregate expenditures, which means the aggregate expenditure will actually shift up. The aggregate expenditures curve will shift up because price is not...
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If marginal propensity to save is 3/4, then the marginal propensity to consume is
MPC or Marginal propensity to consume is also given as, (1-MPS). Where, MPS is marginal propensity to save.So, if MPS =3/4Then MPC = (1-3/4) = 1/4 or 0.25
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Marginal propensity to save is 0.3. Calculate MPC and the expenditure multiplier.
Marginal propensity to save (MPS) is a part of the additional monetary unit received by the population, which increases the real cash income of the population and is aimed at...
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according to the keynesian model,the factors that influence a household's induced consumption are the marginal propensity to consume and...
The other factor is that influences a households induced consumption is its disposable income, or the greater the level of income. A community's ability yo consume increases with the increase...
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