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