Fiscal Policy/AD&AS

• the change in consumption resulting from a given change in real disposable income
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• the change in saving resulting from a given change in real disposable income
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represents total spending in an economy at a given level of real disposable income

the theory that supply creates its own demand

consumption that is independent of the level of disposable income

determines the level of real GDP by the intersection of the aggregate expenditures and aggregate output curves

the amount by which aggregate expenditures fall short of the amount required to achieve full-employment equilibium

the amount by which aggregate expenditures exeed the amount required to achieve full-employment equilibrium

is an economy experiencing inflation and unemployment simultaniously

shows the level of real GDP purchased in the economy at different price levels during a period of time

shows the level of real GDP that an economy produces at different possible price levels

the federal governments decisions about the amount of money it spends and collects in taxes to achieve fell employment and non-inflationary economy

when governments revenues exceed government expenditures

when governments expenditures exeed government revenues