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Question 13 [5 points]

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Choose the Term that Best Matches each of the Following Descriptions.
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a) select answer v Planned expenditure that is determined by current income and changes when income changes.

b) select answer The change in imports caused by a change in income.

c) select answer Indicators of disequilibrium between planned and actual expenditures – incentives for businesses to adjust levels of employment and output (Y)

. d) select answer v Determines real output (Y) and national income in the short run when prices are constant.

e) select answer v The ratio of the change in equilibrium income Y to the change in autonomous expenditure A that caused it. he chan dicators etermin he ratio b) v select answer Aggregate demand C Aggregate expenditure (AE) Aggregate expenditure function (AE) d Autonomous expenditure (A) GDP (Y) Induced expenditure Induced expenditure (c-m)Y d Marginal propensity to consume Marginal propensity to import Multiplier Short-run equilibrium output Unplanned changes in business inventories

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