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July 9, 2025 

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AGGREGATION: The process of adding up, summing, or otherwise identifying the total value of a variable or measure, especially when used in the study of macroeconomics. Common items that are aggregated are demand, supply, and expenditures on gross domestic product, which result in aggregate demand, aggregate supply, and aggregate expenditures.

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CURVE: A line with a non-constant, or changing, slope. In technical circles, the word "line" is often used if the slope is constant and the word "curve" is used to mean the slope is not constant. However, economics often uses the terms line and curve interchangeably, as in "demand line" or "demand curve." Unless your course is taught be an economist with a really strong mathematical inclination, you too can safely use both terms interchangeably.

     See also | slope | graph |


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SLOPE, NET EXPORTS LINE

The negative slope of the net exports line is based on the marginal propensity to import (MPM). Because net exports are exports minus imports, the induced change in imports causes an opposite change in net exports. As such, the slope of the net exports line is negative, less than zero (but greater than negative one). The slope of the net exports line affects the slope of the aggregate expenditures line and thus also affects the magnitude of the multiplier process.

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