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PERSONAL CONSUMPTION EXPENDITURES: The official item in the National Income and Product Accounts maintained by the Bureau of Economic Analysis measuring household consumption expenditures on gross domestic product. Personal consumption expenditures are far and away the largest and tends to be the most stable of the four expenditures, averaging about 65-70% of gross domestic product. The other official expenditures included in the National Income and Product Accounts are gross private domestic investment, government consumption expenditures and gross investment, and net exports of goods and services.

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Lesson 13: Aggregate Demand | Unit 5: Policies Plus Page: 20 of 22

Topic: Business Cycles <=PAGE BACK | PAGE NEXT=>

The consumption, investment, government purchase, and net export determinants cause the aggregate demand curve to shift and lead to macroeconomic instability.
  • This instability is best viewed in terms of business cycles. The effects of business-cycle instability are:
    • Recession. Means higher unemployment rates and related problems.
    • Booming Expansion. Possibility of higher inflation rates and related problems.
Aggregate demand is the prime source of economic instability.

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CONSERVATIVE

A political view that favors--(1) limited government intervention in the economy, (2) extensive reliance on markets, (3) strong national defense, (4) protection and promotion of existing cultural ideals and beliefs, and (5) economic rewards predominately based on productive efforts.

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APLS

RED AGGRESSERINE
[What's This?]

Today, you are likely to spend a great deal of time browsing through a long list of dot com websites looking to buy either a birthday gift for your grandfather or a pleather CD case. Be on the lookout for empty parking spaces that appear to be near the entrance to a store.
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This isn't me! What am I?

The New York Stock Exchange was established by a group of investors in New York City in 1817 under a buttonwood tree at the end of a little road named Wall Street.
"The past is a foreign country; they do things differently there."

-- Leslie Poles Hartley, Writer

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