Economics (McConnell) AP Edition, 19th EditionChapter 28:
The Aggregate Expenditures ModelAfter reading this chapter, you should be able to: - Illustrate how economists combine consumption and investment to depict an aggregate expenditures schedule for a private closed economy.
- Discuss the three characteristics of the equilibrium level of real GDP in a private closed economy: aggregate expenditures = output; saving = investment; and no unplanned changes in inventories.
- Analyze how changes in equilibrium real GDP can occur in the aggregate expenditures model and describe how those changes relate to the multiplier.
- Explain how economists integrate the international sector (exports and imports) and the public sector (government expenditures and taxes) into the aggregate expenditures model.
- Identify and describe the nature and causes of "recessionary expenditure gaps" and "inflationary expenditure gaps."
AP Chapter 28 Introduction
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