The effect of an increase in total planned expenditure in U.S households on
Concept introduction:
Aggregate Demand (AD): AD is the total dollar value of goods and services demanded in an economy during a given period of time and price level.
Real
Inflationary gap: Inflationary gap is the excess of actual aggregate supply over potential aggregate supply. It arises when AD exceeds full-employment AS.
Recessionary gap: Recessionary gap is the excess of potential aggregate supply over actual aggregate supply. It arises when AD falls short of full-employment AS.
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Chapter 11 Solutions
Economics Today: The Macro View, Student Value Edition Plus MyLab Economics with Pearson eText --Access Card Package (18th Edition)
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