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AP MAC unit #3

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Question
Answer
show The fraction,or percentage, of total income that is consumed. APC=consumption/income  
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show The fraction of total income that is saved. APS=saving/income  
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MPC-marginal propensity to consume   show
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MPS-marginal propensity to save   show
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Multiplier Effect   show
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Inflationary Gap   show
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show A schedule or curve that shows the amount of real output that buyers collectively desire to purchase at each possible price level.  
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show 1.change in consumer spending 2.change in invesment spending 3.change in government spending 4.change in net export spending  
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show A schedule or curve showing the level of real domestic output that firms will produce at each price level.  
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Determinants of AS   show
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Expansionary Fiscal Policy   show
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show Uses decreases in government spending or increases in taxes to reduce demand-pull inflation.  
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show An expansionary fiscal policy may increase the intrest rate and reduce private spending ,thereby weakining or canceling hte stimulus of the expansionary policy.  
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