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INDUCED GOVERNMENT PURCHASES: Government purchases that depend on income or production (especially national income or gross national product). An increase in national income triggers an increase in induced government purchases. Induced government purchases is graphically depicted as the slope of the government purchases line and is measured by the marginal propensity for government purchases. The induced relation between income and government purchases, as well as other induced expenditures, form the foundation of the multiplier effect triggered by changes in autonomous expenditures.
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Lesson 13: Aggregate Demand | Unit 3: The Curve
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Page: 11 of 22
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The aggregate demand curve has a negative slope.- This negative slope means that households, business, government and foreign sectors are inclined to increase their aggregate spending on real production if the price level decreases and decrease spending if the price level rises.
Three reasons:- The real-balance effect.
- The interest-rate effect.
- The net-export effect.
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OWNERSHIP AND CONTROL Having simultaneous legal "title" to a resource, good, or commodity and the ability to determine how the resource, good, or commodity is used. Ownership means that having legal title. Control means having the ability to determine use.
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PURPLE SMARPHIN
[What's This?]
Today, you are likely to spend a great deal of time at an auction seeking to buy either storage boxes for your income tax returns or an AC adapter for your CD player. Be on the lookout for florescent light bulbs that hum folk songs from the sixties.
Your Complete Scope
This isn't me! What am I?
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General Electric is the only stock from the original 1896 Dow Jones Industrial Average remaining in the current index.
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"Plans are only good intentions unless they immediately degenerate into hard work." -- Peter Drucker, management consultant
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NBS
Nash Bargaining Solution
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