Term
| Aggregate Planned Expenditure |
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Definition
| Planned consumption expenditure plus investment expenditure plus planned government expenditure plus planned exports minus planned imports |
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Term
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Definition
| The components of aggregate expenditure that do not change when real GDP changes. |
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Term
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Definition
| The components of aggregate expenditure that change when real GDP changes |
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Term
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Definition
| The relationship between consumption expenditure and disposible income, other things remaining the same |
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Term
| Marginal Propensity to Consume |
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Definition
| The fractionof a change in disposible income that is spent on cunsumption-the change in cunsumption expenditure divided by the change in disposible income that brought it about. |
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Term
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Definition
| The level of aggregate expenditure that occurs when aggregate planned expenditure equals real GDP. |
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Term
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Definition
| THe fraction of a change in real GDP that is paid in income taxes-the change in tax payments divded by the change in real GDP |
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