What is the relationship between aggregate demand and aggregate expenditure?
What is the relationship between aggregate demand and aggregate expenditure?
A change in autonomous aggregate expenditures shifts the aggregate expenditures curve for each price level. That shifts the aggregate demand curve by an amount equal to the change in autonomous aggregate expenditures times the multiplier.
How does the aggregate expenditures analysis relate to the aggregate demand analysis?
In general, any change in autonomous aggregate expenditures shifts the aggregate demand curve. The amount of the shift is always equal to the change in autonomous aggregate expenditures times the multiplier.
What is the difference between the aggregate expenditures curve and the aggregate demand curve?
The aggregate expenditures analysis assumes a constant price level. Output measures are in terms of real GDP and real income. The aggregate demand-aggregate supply model shows the relationship between real GDP and the price level.
Is aggregate expenditure and aggregate demand the same?
Key Takeaways Aggregate demand (AD) is the total demand for final goods and services in the economy at a given time and price level. Aggregate expenditure is the current value of all the finished goods and services in the economy. The equation for aggregate expenditure is: AE = C + I + G + NX.
What is the relationship between aggregate expenditures and aggregate demand quizlet?
The difference between aggregate expenditure and aggregate demand is that: aggregate demand shows the relationship between the price level and the level of aggregate expenditure is a point on the aggregate demand curve at a specific price.
What does the Keynesian cross diagram show?
A Keynesian cross diagram shows three situations—one where output is greater than aggregate expenditure, one where aggregate expenditure is equal to output and one where output is less than aggregate expenditure.
What is the slope of aggregate expenditure?
The slope of the aggregate expenditures curve, given by the change in aggregate expenditures divided by the change in real GDP between any two points, measures the additional expenditures induced by increases in real GDP.
What does the aggregate demand curve show?
An aggregate demand curve shows the total spending on domestic goods and services at each price level. You can see an example aggregate demand curve below. Just like in an aggregate supply curve, the horizontal axis shows real GDP and the vertical axis shows price level.
Whats the difference between AD and AE?
Aggregate demand (AD) is the total demand for final goods and services in the economy at a given time and price level. Aggregate expenditure is the current value of all the finished goods and services in the economy. The equation for aggregate expenditure is: AE = C + I + G + NX.
What is the key difference between the aggregate expenditure model and the aggregate demand aggregate supply model quizlet?
Aggregate expenditure shows the amount of desired spending from given levels of​ income, while aggregate demand shows the amount of desired spending from given levels of prices. You just studied 7 terms!
