Income and Expenditure - The Income–Expenditure Model - Planned Aggregate Expenditure and Real GDP
3 important questions on Income and Expenditure - The Income–Expenditure Model - Planned Aggregate Expenditure and Real GDP
What is the aggregate consumption function thea relationship of?
Dispoable income
Consumer spending
Consumer spending
What is the formula for planned aggregate expenditure
It is the consumer spending and the planneed investmentof firms .
so that what every they producer consumer will buy.
AE planned =C + Iplanned
so that what every they producer consumer will buy.
AE planned =C + Iplanned
What is the relationship between real GDP and disposable income?
A higher level of real GDP leads to a higher level of disposable income
this happens because a higher GDP means higher investment, meaning better wages and more disposable income
this happens because a higher GDP means higher investment, meaning better wages and more disposable income
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