Macroeconomics Mcconnell Brue 17 Chapter 9

Front 1

Planned Investment

Back 1

The amount that firms plan or intend to invest

Front 2

Investment Schedule

Back 2

A curve or schedule that shows the amounts firms plan to invest at various possible values of real gross domestic product.

Front 3

Aggregate expenditures schedule

Back 3

The total amount spent for final goods and services in an economy.

Front 4

equilibrium GDP

Back 4

The gross domestic product at which the total quantity of final goods and services purchased is equal to the total quantity of final goods and services produced; the real domestic output at which the aggregate demand curve intersects the aggregate supply curve

Front 5

leakage

Back 5

A withdrawal of potential spending from the income-expenditures stream via saving, tax payments, or imports; a withdrawal that reduces the lending potential of the banking system

Front 6

injection

Back 6

An addition of spending to the income-expenditure stream: investment, government purchases, and net exports

Front 7

unplanned changes in inventories

Back 7

Changes in inventories that firms did not anticipate; changes in inventories that occur because of unexpected increases or decreases of aggregate spending

Front 8

net exports

Back 8

(Xn) Exports - Imports

Front 9

lump-sum tax

Back 9

A tax that is a constant amount (the tax revenue of government is the same) at all levels of GDP.

Front 10

recessionary expenditure gap

Back 10

The amount by which the aggregate expenditures schedule must shift upward to increase the real GDP to its full-employment, noninflationary level.

Front 11

Inflationary expenditure gap

Back 11

The amount by which the aggregate expenditures schedule must shift downward to decrease the nominal GDP to its full-employment noninflationary level.