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6 Cards in this Set
- Front
- Back
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What you do with any extra money that comes in. |
Marginal propensity to consume |
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what percentage of extra income you save |
Marginal Propensity to Save |
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________ is asserted to arise when aggregate demand in an economy outpaces aggregate supply
Aggregate demand shifts to the right |
Demand Pull Inflation |
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Inflation caused by an increase in prices of inputs like labor, raw material, etc.
Aggregate supply shifts to the left |
Cost Push Inflation |
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refers to the percentage of income that is spent on goods and services rather than on savings Average household consumption ----------------------------------------------- Average household income |
Average propensity to consume |
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also known as the savings ratio, is the proportion of income which is saved, usually expressed for household savings as a fraction of total household disposable income. |
Average propensity to save |
