1
Subject:EconomicsPrice: Bought3
1. Explain the components of the Aggregate Expenditure. What effects each of these components and how does each effect the overall aggregate expenditure of the economy? 2. Explain the differences between the planned aggregate expenditure and actual aggregate expenditure. How does this relate to Keynesian cross (equilibrium)? How does this relate to output gaps in the economy? 3. What is the multiplier effect and how is it related to the marginal propensity to consume? Explain why the multiplier effect matters in the Aggregate Expenditure Model
