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G: The standard abbreviation for government purchases by the governement sector, especially when used in the study of macroeconomics. This abbreviation is most often seen in the aggregate expenditure equation, AE = C + I + G + (X - M), where C, I, and (X - M) represent expenditures by the other three macroeconomic sectors, household, business, and foreign.

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Lesson Contents
Unit 1: Intro
  • Definition
  • Characteristics
  • A Mix
  • Product Differentiation
  • Unit 1 Summary
  • Unit 2: Revenue And Cost
  • The Revenue Numbers
  • The Revenue Curves
  • The Cost Numbers
  • The Cost Curves
  • Unit 2 Summary
  • Unit 3: Output
  • The Numbers
  • The Curves
  • Long-Run Equilibrium
  • Unit 3 Summary
  • Unit 4: Analysis
  • Profit, Loss, And Supply
  • Efficiency And Excess Capacity
  • Advertising
  • Unit 4 Summary
  • Unit 5: Evaluation
  • The Bad: Inefficient
  • The Good: Differences
  • Regulation
  • Unit 5 Summary
  • Course Home
    Monopolistic Competition

    • The first unit of this lesson, A Bunch Of Firms, begins this lesson with a look at the nature of monopolistic competition and how it is related to other market structures.
    • In the second unit, Revenue And Cost, we review the revenue side and the cost side the production decision for a monopolistically competitive firm.
    • The third unit, The Output Level, then looks at the profit-maximizing output production decision by a firm in monopolistic competition.
    • In the fourth unit, Doing Some Analysis, we examine a few of the implications of market characterized by monopolistic competition.
    • The fifth and final unit, Good Or Bad?, then closes this lesson by considering the good and the bad of monopolistic competition.

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    INFLATIONARY EXPECTATIONS, AGGREGATE EXPENDITURES DETERMINANT

    One of several specific aggregate expenditures determinants assumed constant when the aggregate expenditures line is constructed, and that shifts the aggregate expenditures line when it changes. An increase in inflationary expectations causes an increase (upward shift) of the aggregate expenditures line. A decrease in inflationary expectations causes a decrease (downward shift) of the aggregate expenditures line. Other notable aggregate expenditures determinants include interest rates, federal deficit, consumer confidence, and exchange rates.

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