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What are the four components of aggregate demand?
What are the four components of aggregate demand?
The four components of aggregate demand are consumption, investment, government spending, and net exports.
What does average propensity to consume (APC) represent?
What does average propensity to consume (APC) represent?
Average propensity to consume (APC) represents the ratio of total consumption to total income.
Define propensity to consume.
Define propensity to consume.
Propensity to consume refers to the proportion of disposable income that is spent on consumption.
What are the four components of aggregate demand according to the text?
What are the four components of aggregate demand according to the text?
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What does investment refer to in the context of aggregate demand?
What does investment refer to in the context of aggregate demand?
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Define propensity to consume and provide the two ways it can be represented.
Define propensity to consume and provide the two ways it can be represented.
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What book is recommended for further study of macroeconomics in the text?
What book is recommended for further study of macroeconomics in the text?
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What does net exports represent in the context of aggregate demand?
What does net exports represent in the context of aggregate demand?
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