Chapter 11: Income and Expenditure

Economics 102 with Drozd at University of Wisconsin - Madison

About this deck

By: Uriah Buman
Textbook:

Macroeconomics: Principles and Applications
Created: 2009-05-03
Size: 21 flashcards
Views: 15

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Unplanned Inventory Investment
(1 answer)

Occurs when actual sales are more or less than businesses expected, leading to unplanned changes in inventories

-T
(1 answer)

Taxes

Planned Aggregate Spending
(1 answer)

The total amount of planed spending in the economy

Form: y
(1 answer)

mx + b

Form
(1 answer)

y = mx + b

Y
(1 answer)

GDP

Inventory Investment
(1 answer)

The value of the change in total inventories held in the economy during a given period

Aggregate Consumption Function
(1 answer)

The relationship for the economy as a whole between aggregate current disposable income and aggregate consumer spending

Consumer Spending Function
(1 answer)

An equation showing how an individual household's consumer spending varies with the household's current disposable income

- I
(1 answer)

IUnplanned + IPlanned

C
(1 answer)

A + MPC * (Y - T)

Planned Investment Spending
(1 answer)

The investment spending that businesses in tend to undertake during a given period

-a
(1 answer)

Individual Household Autonomous Consumer Spending

Inventories
(1 answer)

Stocks of goods held to satisfy future sales

AEPlanned
(1 answer)

C + IPlanned

-Y
(1 answer)

Real GDP

Actual Investment Spending
(1 answer)

The sum of planned investments spending and unplanned investment spending

Accelerator Principle
(1 answer)

A higher growth rate of GDP leads to higher planned investment spending, and a lower growth rate of real GDP leads to lower planned investment spending

-MPC
(1 answer)

Marginal Propensity to Consumer

About this deck

By: Uriah Buman
Textbook:

Macroeconomics: Principles and Applications
Created: 2009-05-03
Size: 21 flashcards
Views: 15

About StudyBlue

“Simply amazing. The flash cards are smooth, there are many different types of studying tools, and there is a great search engine. I praise you on the awesomeness.”
Dennis