Match the each term with the correct definition: a. The amount by which consumption rises when disposable income rise by one dollar. b. The level of output (real GDP) at which output (real GDP) equals planned aggregate expenditure. c. The ratio of total change in real GDP caused by an autonomous change in aggregate spending. d. Total planned spending on final goods and services in the economy. e. The equation showing how individual household's consumer spending varies with its current disposable income. f. Consumption spending that is not related to the level of disposable income. g. Unintended change in inventories occuring when actual sales are higher or lower than expected sales. h. Planned investment spending plus unplanned inventory investment. i. The relationship for the whole economy between agreegate current disposable income and aggregate consumer spending. j. The stocks of goods held to satisfy future sales.
Match the each term with the correct definition: a. The amount by which consumption rises when disposable income rise by one dollar. b. The level of output (real GDP) at which output (real GDP) equals planned aggregate expenditure. c. The ratio of total change in real GDP caused by an autonomous change in aggregate spending. d. Total planned spending on final goods and services in the economy. e. The equation showing how individual household's consumer spending varies with its current disposable income. f. Consumption spending that is not related to the level of disposable income. g. Unintended change in inventories occuring when actual sales are higher or lower than expected sales. h. Planned investment spending plus unplanned inventory investment. i. The relationship for the whole economy between agreegate current disposable income and aggregate consumer spending. j. The stocks of goods held to satisfy future sales.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Match the following terms ( terms are labeled 1-10 )to the correct definition(definitions are labeled a through J)
aggregate consumption function, multiplier,
planned aggregate expenditure (PAE), income-expenditure equlibrium GDP, marginal propensity to consume (MPC), consumption function, unplanned inventory investment, actual investment spending,inventory, autonomous spending
A) The amount by which consumption rises when disposable income rise by one dollar
marginal propensity to consume (MPC)
B) The level of output (real GDP) at which output (real GDP) equals planned aggregate expenditure.
income-expenditure equlibrium GDP
C) The ratio of total change in real GDP caused by an autonomous change in aggregate spending.
multiplier
D) Total planned spending on final goods and services in the economy.
aggregate consumption function
E) The equation showing how individual household's consumer spending varies with its current disposable income.
consumption function
F) Consumption spending that is not related to the level of disposable income.
autonomous spending
G) Unintended change in inventories occuring when actual sales are higher or lower than expected sales.
unplanned inventory investment
H) Planned investment spending plus unplanned inventory investment.
actual investment spending
I) The relationship for the whole economy between agreegate current disposable income and aggregate consumer spending.
planned aggregate expenditure (PAE)
J) The stocks of goods held to satisfy future sales
inventory
1. aggregate consumption function
2. multiplier
3. planned aggregate expenditure (PAE)
4. income-expenditure equlibrium GDP
5. marginal propensity to consume (MPC)
6. consumption function
7. unplanned inventory investment
8. actual investment spending
9. inventory
10. autonomous spending
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