The first piece of the aggregate demand equation is Y

The first piece of the aggregate demand equation is Y -...

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The first piece of the aggregate demand equation is Y. This represents output or  income. Because Y is the total amount of goods and services purchased by consumers,  businesses, and the government, taking into account foreign trade, it is necessarily the  output for the economy. This number is also the gross domestic product of an economy.  Because every unit of output within an economy turns into income for members of the  economy, it is reasonable to call output income. More specifically, the output of an  economy is the national income for the economy. The per capita income is the national  income for the economy divided by the population. This number is useful for comparing  the standard of living across countries. All of this information directly results from the  aggregate demand equation.  The second piece of the aggregate demand equation is C(Y - T). This signifies that 
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The first piece of the aggregate demand equation is Y -...

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