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Net exports.
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What is the smallest component of aggregate spending in US?
consumer spending
True or False. Investment spending is the most volatile component of aggregate expenditures?
True
In an aggregate demand-aggregate supply diagram what will equal decreases in government spending and taxes do?
No effect. Spending will decrease Aggregate Demand, lower taxes will raise Aggregate Demand
What are the factors that would affect the aggregate demand?
Consumption, investment, government spending, net exports, and aggregate expenditures.
A decrease in government spending will cause a?
decrease in aggregate demand
What is the smallest component of aggregate spending in US?
consumer spending
True or False. Investment spending is the most volatile component of aggregate expenditures?
True
In an aggregate demand-aggregate supply diagram what will equal decreases in government spending and taxes do?
No effect. Spending will decrease Aggregate Demand, lower taxes will raise Aggregate Demand
What will increased consumer spending?
Consumer spending is called consumption, which is a component of Aggregate Demand in our economy. In monetary policy, the Federal Reserve can buy treasuries, lower the reserve requirement, and lower the discount rate which will increase consumption. In fiscal policy, the government can cut taxes to increase consumer spending.
When the government builds a new aircraft carrier this is part of which component of aggregate demand?
When the government builds a new aircraft carrier this is part of which component of aggregate demand
What are the factors that would affect the aggregate demand?
Consumption, investment, government spending, net exports, and aggregate expenditures.
A decrease in government spending will cause a?
decrease in aggregate demand
Which is the smallest component protons electrons neutrons or atoms?
Electrons are the smallest component of an atom.
What is the largest component of total spending in the US economy?
consumer spending
Which of the following statements best explains the effects of transfer payments and taxes on aggregate spending?
Transfer payments and taxes affect aggregate spending indirectly by first changing disposable income and thereby changing consumption.
Ratio of change in GDP to an initial change in aggregate expenditures what?
Spending multiplier
The largest component of aggregate demand is?
Consumption constitutes 60% of AD in the UK.
