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AD: The abbreviation for aggregate demand, which is the total (or aggregate) real expenditures on final goods and services produced in the domestic economy that buyers would willing and able to make at different price levels, during a given time period (usually a year). Aggregate demand (AD) is one half of the aggregate market analysis; the other half is aggregate supply. Aggregate demand, relates the economy's price level, measured by the GDP price deflator, and aggregate expenditures on domestic production, measured by real gross domestic product. The aggregate expenditures are consumption, investment, government purchases, and net exports made by the four macroeconomic sectors (household, business, government, and foreign).
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Lesson 19: Money Creation | Unit 2: Fred Returns
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Page: 9 of 23
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- Reviewing Fred the Goldsmith, that Fred has developed several modern banking functions: safekeeping, depository, lending and fractional-reserve banking functions.
- Fred's system of tracking gold flows by issuing receipts for each deposit.
- The three main features of Fred's system:
- Knights need not withdraw the same gold deposited.
- Fred need not personally know each knight requesting services.
- These gold receipts are as good as gold and become money.
- Two options Fred has to make a loan:
- Loan some gold from the safe which could be deposited back in return for receipts.
- To loan the receipts directly.
- The importance of fractional-reserve banking and Fred's ability to create money that is used for investment and economic growth.
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MARGINAL PROPENSITY FOR GOVERNMENT PURCHASES The change in government purchases induced by a change in income or production (national income or gross domestic product). The marginal propensity for government purchases (abbreviated MPG) is another term for the slope of the government purchases line and is calculated as the change in government purchases divided by the change in income or production. The MPG plays a role in Keynesian economics. It augments the slope of the aggregate expenditures line and is part of the multiplier process. A related marginal measure is the marginal propensity to consume.
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YELLOW CHIPPEROON
[What's This?]
Today, you are likely to spend a great deal of time surfing the Internet looking to buy either a replacement nozzle for your shower or a decorative windchime with plastic . Be on the lookout for slow moving vehicles with darkened windows.
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In his older years, Andrew Carnegie seldom carried money because he was offended by its sight and touch.
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"It takes generosity to discover the whole through others. If you realize you are only a violin, you can open yourself up to the world by playing your role in the concert. " -- Jacques Yves Cousteau, marine explorer
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MSCI
Morgan Stanley Capital Index
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