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AGGREGATE EXPENDITURES LINE: A line representing the relation between aggregate expenditures and gross domestic product used in the Keynesian cross. The aggregate expenditure line is obtained by adding investment expenditures, government purchases, and net exports to the consumption line. As such, the slope of the aggregate expenditure line is largely based on the slope of the consumption line (which is the marginal propensity to consume), with adjustments coming from the marginal propensity to invest, the marginal propensity for government purchases, and the marginal propensity to import. The intersection of the aggregate expenditures line and the 45-degree line identifies the equilibrium level of output in the Keynesian cross.
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Lesson 12: Elasticity and Demand | Unit 3: Measurement
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Page: 15 of 25
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From these numbers you can see that: - One, as the price increases from 0 cents per minute to 10 cents per minute, total revenue values increase.
- Two, as the price increases from 10 cents per minute to 20 cents per minute, total revenue values decrease.
- Three, at the price of 10 cents per minute, total revenue is at its maximum value or $500,000.
A few conclusions:- Total revenue increases in the inelastic range of demand when they increase their price.
- Total revenue increases in the elastic range of demand when they decrease their price.
- Total revenue is at the maximum level at the unit elastic point.
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WAGES, AGGREGATE SUPPLY DETERMINANT One of several specific aggregate supply determinants assumed constant when the short-run aggregate supply curve is constructed, and that shifts the short-run aggregate supply curve when it changes. An increase in the wages causes a decrease (leftward shift) of the short-run aggregate supply curve. A decrease in the wages causes an increase (rightward shift) of the short-run aggregate supply curve. Other notable aggregate supply determinants include the technology, energy prices, and the capital stock. Wages are an example of a resource price aggregate supply determinant.
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WHITE GULLIBON
[What's This?]
Today, you are likely to spend a great deal of time at a going out of business sale looking to buy either a bookshelf that will fit in your closet or a birthday greeting card for your grandfather. Be on the lookout for mail order catalogs with hidden messages.
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This isn't me! What am I?
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On a typical day, the United States Mint produces over $1 million worth of dimes.
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"Old age isn't so bad when you consider the alternative. " -- Cato, Roman orator
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BVAR
Bayesian VAR (Vector Autoregression)
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