Key Terms

Question

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Marginal propensity to consume (MPC)

Marginal propensity to save (MPS)

Autonomous change in aggregate spending

Multiplier

Consumption function

Aggregate consumption function

Planned investment spending

Accelerator principle

Inventories

Inventory investment

Unplanned inventory investment

Actual investment spending

Planned aggregate spending

Income–expenditure equilibrium

Income–expenditure equilibrium GDP

Keynesian cross