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GOVERNMENT CONSUMPTION EXPENDITURES AND GROSS INVESTMENT: The official item in the National Income and Product Accounts maintained by the Bureau of Economic Analysis measuring government purchases undertaken by the government sector. Government consumption expenditures and gross investment averages between 15-20% of gross domestic product. This percentage tends to be ebb and flow a little with the political winds.
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Lesson 16: Aggregate Shocks | Unit 3: Basic Shifts
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Page: 8 of 21
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Topic:
AD Increase: Long Run
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The long-run equilibrium is given by the intersection of the negatively-sloped AD curve and the vertical LRAS.- An increase in AD results in a new long-run equilibrium.
- At the new equilibrium, real production does not change, it stays at Qf. The price level increases from Po to P1.
- We're missing a lot of short-run action that occurs as we go from one long-run equilibrium to another.
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AGGREGATE DEMAND DECREASE, SHORT-RUN AGGREGATE MARKET A shock to the short-run aggregate market caused by a decrease in aggregate demand, resulting in and illustrated by a leftward shift of the aggregate demand curve. A decrease in aggregate demand in the short-run aggregate market results in a decrease in the price level and a decrease in real production. The level of real production resulting from the shock can be greater or less than full-employment real production.
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PINK FADFLY [What's This?]
Today, you are likely to spend a great deal of time surfing the Internet trying to buy either one of those memory foam pillows or a remote controlled train set. Be on the lookout for slightly overweight pizza delivery guys. Your Complete Scope
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Approximately three-fourths of the U.S. paper currency in circular contains traces of cocaine.
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"The mediocre teacher tells. The good teacher explains. The superior teacher demonstrates. The great teacher inspires." -- William Ward ‚ Texas Wesleyan University Administrator
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AIO Action Information Organization
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