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In the keynesian model of aggregate expenditure real GDP is determined by what?

The aggregate expenditure model relates aggregate expenditures, which is the sum of planned level of consumption + investment + government purchases + net exports at a given price level, to the level of GDP. The key word here is planned. GDP is the same as aggregate expenditures(AE) except for one difference. People, firms and governments don't always spend what they had planned. So AE differs from GDP in that it deals exclusively with amounts firms intend to invest, and not necessarily taking into account amounts that will actually be invested as in GDP Where GDP is defined as C + I + G + NX and I = Ip + Iu (planned + unplanned investment), Aggregate Expenditures is defined as C + Ip + G + NX. AE (Aggregate Expenditure) is used in conjunction with GDP in the Aggregate Expenditures Model to predict future GDP direction. In this model, when AE = GDP then the economy is in equilibrium. According to this model an economy will move towards its equilibrium causing changes in the GDP.


What happens when aggregate planned expenditure exceeds real GDP?

If aggregate planned expenditure exceed real GDP, firms sell more than they planned to sell and end up with inventories being too low. vice versa if aggregate planned expenditure is less than real GDP, firms sell lessthan they planned to sell and end up with unplanned inventories.


What is the relationship between aggregate expenditure and real GDP?

There is a direct proportional relationship between aggregate expenditure and real GDP. Aggregate expenditure is actually equal to real GDP. This is different from the planned expenditure.


On the aggregate expenditure graph if autonomous investment decreased by 10 billion what happens to the aggregate expenditure line and planned savings?

autonomous onvestment cant be decreased


What is the economic system that relies on habit custom or ritual to decide questions of consumption and production of goods and services?

a centrally planned economy

Related Questions

In the keynesian model of aggregate expenditure real GDP is determined by what?

The aggregate expenditure model relates aggregate expenditures, which is the sum of planned level of consumption + investment + government purchases + net exports at a given price level, to the level of GDP. The key word here is planned. GDP is the same as aggregate expenditures(AE) except for one difference. People, firms and governments don't always spend what they had planned. So AE differs from GDP in that it deals exclusively with amounts firms intend to invest, and not necessarily taking into account amounts that will actually be invested as in GDP Where GDP is defined as C + I + G + NX and I = Ip + Iu (planned + unplanned investment), Aggregate Expenditures is defined as C + Ip + G + NX. AE (Aggregate Expenditure) is used in conjunction with GDP in the Aggregate Expenditures Model to predict future GDP direction. In this model, when AE = GDP then the economy is in equilibrium. According to this model an economy will move towards its equilibrium causing changes in the GDP.


What happens when aggregate planned expenditure exceeds real GDP?

If aggregate planned expenditure exceed real GDP, firms sell more than they planned to sell and end up with inventories being too low. vice versa if aggregate planned expenditure is less than real GDP, firms sell lessthan they planned to sell and end up with unplanned inventories.


What is the relationship between aggregate expenditure and real GDP?

There is a direct proportional relationship between aggregate expenditure and real GDP. Aggregate expenditure is actually equal to real GDP. This is different from the planned expenditure.


On the aggregate expenditure graph if autonomous investment decreased by 10 billion what happens to the aggregate expenditure line and planned savings?

autonomous onvestment cant be decreased


Plan and non plan expenditures by government?

The expenditure in plan head is planned like( salary,purchase, etc.) but in case of non-plan that is renomn planned expenditure (like administration expenditure,calamity,mischalaneous etc.)


What are the types of data needed to convert a planned order into a production order?

Material Number,Planned Order Number


What are the two types of data needed to convert a planned order into a production order?

Material Number,Planned Order Number


What is a detailed statement of estimated receipts and planned expenditures?

A detailed statement of estimated receipts and planned expenditures is a financial document that outlines the expected income sources and amounts, as well as the planned expenses and their corresponding amounts over a specific period, such as a month, quarter, or year. It provides a comprehensive overview of the anticipated financial inflows and outflows to help individuals or organizations monitor their financial health and make informed decisions.


How do you calculate unfinanced capital expenditures?

Unfinanced capital expenditures (CapEx) are calculated by identifying the total capital expenditures planned or incurred during a specific period that are not covered by external financing sources. This includes adding up all capital investments, such as property, equipment, and infrastructure, and then subtracting any financing obtained through loans, grants, or equity specifically designated for these expenditures. The resulting figure represents the amount that the company must fund from its internal cash flows or reserves.


Does united way of greater St. Louis give any funds to planned parenthood?

No. I know several people employed with Planned Parenthood and UW does not provide any funding to Planned Parenthood of greater St. Louis. Although, other branches of PP in different cities do receive funding from United Way.


The production and distribution of goods can be planned by the government to assure fairness for all of the people?

socialism


What is The production and distribution of goods is planned by the government to assure fairness for all of the people.?

socialism