The connection between real GDP and aggregate expenditure cannot be avoided. Different price levels help determine the aggregate expenditure of the real GDP. There are two elements, namely, aggregate expenditure schedule and curve that assist in better understanding of this connection. Using the schedule the aggregate planned expenditure can be achieved at every level of the real GDP. While with the curve a graph of this aggregate expenditure, schedules can be attained.
Links of Previous Main Topic:-
- Definition of Economics
- Economic Problem
- Expenditure Multiplier Know the Keynesian Model
- Fixed Prices and Expenditure Plans
Links of Next Macroeconomics Topics:-
- Convergence to Equilibrium
- Multiplier
- The Basic Idea of the Multiplier
- The Multiplier Effect
- Why Is the Multiplier Greater Than 1
- The Size of the Multiplier
- Imports and Income Taxes
- The Multiplier Process
- Business Cycle Turning Points
- The Multiplier and the Price Level
- Adjusting Quantities and Prices
- Aggregate Expenditure and Aggregate Demand
- Deriving the Aggregate Demand Curve
- Changes in Aggregate Expenditure and Aggregate Demand
- Equilibrium Real GDP and the Price Level
- Expenditure Multiplier Know the Keynesian Model