Create an account
a withdrawal of potential spending from the income-expenditure stream via savings, tax payments, or imports or a withdrawal that reduces the lending of potential of the banking system
an addition of spending to the income-expenditure stream: Investment, government purchases, and net exports
the amount by which aggregate expenditures at the full-employment GDP fall short of those required to achieve the full-employment GDP
recessionary expenditure gap
the amount by which an economy's aggregate expenditures at the full-employment GDP exceed those just necessary to achieve the full-employment level of GDP.
inflationary expenditure gap
when aggregate expenditure is greater than GDP,
then there will be an unplanned decrease in inventories and GDP will increase
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