Terms Aggregate Demand - The total demand for goods and services in an economy. Aggregate Supply - The total supply of goods and services in an economy. Crowding In - When government spending induces private investment. Crowding Out - When government spending reduces private investment. Demand Curve - A schedule that relates price to quantity demanded. Disposable Income - Income that may be spent after taxes are subtracted. Exogenous - A change resulting from conditions outside of an economic model. GDP - Gross domestic product is the total value of all goods and services produced within an economy. Income - Money taken in by a system, an individual, a firm, or an economy. Inflation - The year-to-year increase in the price level. Marginal Propensity to Consume - A number that describes the amount of an additional dollar of income that a consumer will spend rather than save. Money Supply - The total amount of currency and demand deposits that exists in an economy. National Income
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This note was uploaded on 04/14/2011 for the course ECON 202 taught by Professor Saleh during the Spring '08 term at Loyola Chicago.