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4 Cards in this Set
- Front
- Back
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According to Keynes, the level of consumption spending by household depends primarily on |
The level of disposable income |
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The consumption function shows that when disposable income increases, consumption spending |
Increases by a smaller amount |
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The marginal propensity to consume is defined as |
The fraction of each additional dollar of disposable income that household spend on consumption |
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A recessionary expenditure gap is |
The amount by which total spending falls short of what is needed to achieve full employment |
