The Keynesian AD/AS Model
What Determines Consumption Expenditure?
What Determines Investment Expenditure?
What Determines Government Spending?
What Determines Net Exports?
|Reasons for a Decrease in Aggregate Demand||Reasons for an Increase in Aggregate Demand|
Key Concepts and Summary
- disposable income
- income after taxes
- inflationary gap
- equilibrium at a level of output above potential GDP
- real GDP
- the amount of goods and services actually being sold in a nation
- recessionary gap
- equilibrium at a level of output below potential GDP