Term
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Definition
| the total quantity of goods and services produced in an economy in a given period |
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Term
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Definition
| the total income received by all factors of production in a given period |
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Term
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Definition
| the relationship between consumption and income |
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Term
| marginal prpensity to consume (MPC) |
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Definition
| that fraction of a change in income that is consumed, or spent |
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Term
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Definition
| the part of aggregate income that is not consumed |
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Term
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Definition
| something that its always true |
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Term
| marginal propensity to save (MPS) |
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Definition
| the fraction of a change in income that is saved |
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Term
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Definition
| those additions to capital stock and inventory that are planned by firms. |
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Term
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Definition
| the actual amount of investment that takes place; it includes items such as unplanned changes in inventories |
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Term
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Definition
| occrus when there is no tendency for change. in the macroeconomic goods market, equilibirum occurs when planned aggregate expenditure is equal to aggregate output. |
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Term
| planned aggregate expenditure |
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Definition
| the total amount the economy p lans to spend in a given period |
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Term
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Definition
| the ratio of the change in the equilibrium level of output to a change in some exogenous variable |
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Term
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Definition
| a variable that is assumed not to depend on the state of the economy - that is, it does not change when the economy changes |
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