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Unformatted text preview: increase in each range. 4. Explain the meaning of a AD shortfall, and AD excess. Aggregate demand AE/AP 5. What are the components of Aggregate expenditure? 6. Write the aggregate expenditure function, and describe autonomous and induced expenditure. 7. Describe when the economy would have a recessionary gap/inflationary gap. 8. Define the multiplier and explain how it is used if the economy has a recessionary gap/inflationary gap. 9. Draw the AP curve and explain why AP is equal to Income in the macro economy. 10. Clearly understand the slope and the intercept of the AE curve....
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This note was uploaded on 03/24/2010 for the course ECON 201 taught by Professor Fairchild during the Spring '08 term at Northern Virginia.
- Spring '08