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aggregate planned expenditure
equal to planned consumption expenditure plus planned investment plus planned government expenditure on goods and services plus planned exports minus planned imports
the relationship between consumption expenditure and disposable income other things remaining the same
the relationship between saving and disposable income other things remaining the same
marginal propensity to consume
the fraction of a change in disposable income that is consumed. the slope of the consumption function
marginal propensity to save
the fraction of change in disposable income that is saved. the slope of the saving function
the sum of investment, governement expenditures, and exports do not vary with real gdp
the level of aggregate expenditure that occurs when aggregate planned expenditure equals real gdp
the amount by which a change in autonomous expenditure is magnified or multiplied to determine the change in equilibrium expenditure and real gdp
a rise in the price level decreases the purchasing power of consumers real weath which decreases their consumption expenditures
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