### 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

### consumption function

the relationship between consumption expenditure and disposable income other things remaining the same

### saving function

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

### autonomous expenditure

the sum of investment, governement expenditures, and exports do not vary with real gdp

### equilibrium expenditure

the level of aggregate expenditure that occurs when aggregate planned expenditure equals real gdp

### Multiplier

the amount by which a change in autonomous expenditure is magnified or multiplied to determine the change in equilibrium expenditure and real gdp

### wealth effect

a rise in the price level decreases the purchasing power of consumers real weath which decreases their consumption expenditures