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ECU: The abbreviation of the European Currency Unit, which is the forerunner of the euro that will be officially introduced in the European Union in 2002. The European Currency Unit is the weighted average of the currencies of the twelve original nations of the European Union. In that there are is no paper currency yet, it is currently used primarily for big-time commercial, financial, and international transactions.
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Lesson 13: Aggregate Demand | Unit 1: The Concept
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Page: 1 of 22
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In this lesson we take a look at the demand side of the aggregate market (AD/AS analysis)--aggregate demand. A definition: Aggregate Demand is the aggregate or total expenditure on final goods and services produced in the domestic economy, at a range of price levels, during a given time period (usually a year). Three points: - Expenditures are made by all members of society.
- Expenditures are made during the year.
- Expenditures are on the production that people use to satisfy wants and needs.
Aggregate demand is only one side of the aggregate market--the expenditure side--the other side is aggregate supply--the producing side.- Expenditures come from the household, business, government, and foreign sectors.
- Production comes from resources--labor, capital, land, and entrepreneurship.
- The aggregate market is a model used to analyze the economy's total production and the price level.
- This analysis, also called AD/AS, lets us understand macroeconomic events, like recessions, inflation, and unemployment.
- The aggregate market can be used to evaluate the effects of government policies.
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SAVING The after-tax disposable income of the household sector that is not used for consumption expenditures. Saving primarily involves the use of income to purchase legal claims through financial markets rather than the direct purchase of physical goods and services (which is consumption expenditures). In the circular flow model, saving is the diversion of household income away from consumption expenditures and into the financial markets, which then flows to business investment expenditures and government purchases. Saving is one of two basic uses of disposable income. The other is consumption expenditures.
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BROWN PRAGMATOX
[What's This?]
Today, you are likely to spend a great deal of time at a flea market hoping to buy either a coffee cup commemorating the 2000 Olympics or a birthday gift for your grandmother. Be on the lookout for crowded shopping malls.
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The first paper currency used in North America was pasteboard playing cards "temporarily" authorized as money by the colonial governor of French Canada, awaiting "real money" from France.
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"Far and away the best prize that life has to offer is the chance to work hard at work worth doing." -- Theodore Roosevelt, 26th US president
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FASB
Financial Accounting Standards Board
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