|
|
KEYNESIAN CROSS: The standard diagram used in Keynesian economics to identify the equilibrium level of aggregate output (that is, gross domestic product), with aggregate expenditures measured on the vertical axis, and aggregate output measured on the horizontal axis. This diagram contains two key lines, the aggregate expenditure line and the 45-degree line. Intersection between these lines indicates equilibrium aggregate output. This intersection, or cross, is what gives rise to the name.
Visit the GLOSS*arama
|
|
|
|
                          
INVESTMENT LINE: A graphical depiction of the relation between business investment expenditures and national income that forms one of the key building blocks for Keynesian economics. The slope of this line is positive, greater than zero, less than one, and goes by the name marginal propensity to invest. The vertical intercept of the investment line is autonomous investment. The aggregate expenditures line used in the Keynesian cross is obtained by adding this investment line, as well as, government purchases and net exports, to the consumption line. The investment line is also combined with the saving line in saving-investment model used in Keynesian economics. See also | Keynesian economics | investment expenditures | national income | marginal propensity to invest | aggregate expenditures | aggregate expenditures line | Keynesian cross | saving-investment model | induced investment | autonomous investment |
Recommended Citation:INVESTMENT LINE, AmosWEB GLOSS*arama, http://www.AmosWEB.com, AmosWEB LLC, 2000-2024. [Accessed: May 8, 2024].
AmosWEB Encyclonomic WEB*pedia:Additional information on this term can be found at: WEB*pedia: investment line
Search Again?
Back to the GLOSS*arama
|
|
|
PRICE LEVEL The average of the prices of goods and services produced in the aggregate economy. In a theoretical sense, the price level is the price of aggregate production. In a practical sense, the price level is commonly measured by either of two price indexes, the Consumer Price Index (CPI) or the GDP price deflator. The CPI is the price index widely publicized in the media and used by the general public. The GDP price deflator, in contrast, is less well-known, but is usually the price index of choice among economists. The inflation rate is calculated as the percentage change in the price level.
Complete Entry | Visit the WEB*pedia |
|
|
PINK FADFLY
[What's This?]
Today, you are likely to spend a great deal of time wandering around the shopping mall wanting to buy either handcrafted decorations to hang on your walls or throw pillows for your bed. Be on the lookout for telephone calls from long-lost relatives.
Your Complete Scope
This isn't me! What am I?
|
|
|
The first U.S. fire insurance company was established by Benjamin Franklin in 1752 in Philadelphia.
|
|
|
"Enthusiasm is the greatest asset in the world. It beats money and power and influence. It is no more or less than faith in action. " -- Henry Chester, Writer
|
|
LOCH
London Options Clearing House
|
|
|
Tell us what you think about AmosWEB. Like what you see? Have suggestions for improvements? Let us know. Click the User Feedback link.
User Feedback
|
|
