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ASEAN: The Association of Southeast Asian Nations (ASEAN) is a subregional organization established in 1967 in Bangkok by the five original Member Countries: Indonesia, Malaysia, Philippines, Singapore, and Thailand. Brunei Darussalam joined in 1984, Vietnam in 1995, Laos and Myanmar in 1997, and Cambodia in 1999. The aims and purposes of the Association are to accelerate the economic growth, social progress and cultural development in the region and to promote regional peace and stability through abiding respect for justice and the rule of law.

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Lesson 13: Aggregate Demand | Unit 2: Doing More Page: 4 of 22

Topic: Expenditures <=PAGE BACK | PAGE NEXT=>

Aggregate demand is expenditures made by all members of society, that is, aggregate expenditures.

A definition:

Aggregate expenditures are the total expenditures on gross domestic product undertaken in a given time period.

  • Society is grouped into four sectors, households, business, government, and foreign.

Expenditures by each sector are:

  • Household Consumption
  • Business Investment
  • Government Government Purchases
  • Foreign Net exports

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SLOPE, SAVING LINE

The positive slope of the saving line is also termed the marginal propensity to save (MPS). This slope is greater than zero but less than one, reflecting induced saving and the Keynesian psychological law of consumer behavior that saving increases by less than the increase in income. The slope of the saving line provides the foundation for the slope of the leakages line used in the injections-leakages model. It thus also affects the magnitude of the multiplier process.

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North Carolina supplied all the domestic gold coined for currency by the U.S. Mint in Philadelphia until 1828.
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