________- Withdrawal of spending from the economys circular flow of income and expenditures.
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Injection
________- Addition of spending into the income- expenditures stream.
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total output
Saving is what causes consumption to be less than ________ or GDP.
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equilibrium GDP
The ________ will change in response to changes in either the investment schedule or the consumption schedule.
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Lump
________- sum tax- A tax of a constant amount or, more precisely, a tax yielding the same amount of tax revenue at each level of GDP.
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Recessionary expenditure
________ gap- The amount by which aggregate expenditures at the full- employment GDP fall short of those required to achieve the full employment GDP.
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Exports
________ create domestic production, income, and employment for a nation.
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aggregate expenditures
Increases in public spending, like increases in private spending, shift the ________ schedule upward and produce a higher equilibrium GDP.
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possible output
Aggregate expenditures schedule- Shows the amount that will be spent at each ________ or income level.
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Planned investment
An investment schedule showing the amounts business firms collectively intend to invest at each possible level of GDP
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Investment schedule
Shows the amount of investment forthcoming at each level of GDP
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Aggregate expenditures schedule
Shows the amount that will be spent at each possible output or income level
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Equilibrium GDP
That output whose production creates total spending just sufficient to purchase that output
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Leakage
Withdrawal of spending from the economys circular flow of income and expenditures
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Injection
Addition of spending into the income-expenditures stream
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Lump-sum tax
A tax of a constant amount or, more precisely, a tax yielding the same amount of tax revenue at each level of GDP
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Recessionary expenditure gap
The amount by which aggregate expenditures at the full-employment GDP fall short of those required to achieve the full employment GDP
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Inflationary expenditure gap
The amount by which an economys aggregate expenditures at the full-employment GDP exceed those just necessary to achieve the full-employment level of GDP
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Planned investment
An investment schedule showing the amounts business firms collectively intend to invest at each possible level of GDP
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Investment schedule
Shows the amount of investment forthcoming at each level of GDP
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Aggregate expenditures schedule
Shows the amount that will be spent at each possible output or income level
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Equilibrium GDP
That output whose production creates total spending just sufficient to purchase that output
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Leakage
Withdrawal of spending from the economy’s circular flow of income and expenditures
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Injection
Addition of spending into the income-expenditures stream
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Net exports
Exports - imports
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Lump-sum tax
A tax of a constant amount or, more precisely, a tax yielding the same amount of tax revenue at each level of GDP
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Recessionary expenditure gap
The amount by which aggregate expenditures at the full-employment GDP fall short of those required to achieve the full employment GDP
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Inflationary expenditure gap
The amount by which an economy’s aggregate expenditures at the full-employment GDP exceed those just necessary to achieve the full-employment level of GDP
Studied by 4 people
