Questions and Answers
What does the consumption function show?
Functional relationship between income and consumption
Define Aggregate Demand (AD).
Total value of all final goods and services planned to be bought by all sectors of the economy at a given income level during a period of time
List the components of Aggregate Demand (AD).
Household consumption expenditure (C), Investment expenditure (I), Government consumption expenditure (G), Net export (X-M)
What does Aggregate Supply (AS) refer to?
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What does Autonomous Consumption refer to?
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What is the equation of the consumption function?
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