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prosperity abroad- their good fortunes
exchange rates-
tariffs and devaluations-

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Inflation is one factor held constant along the net export function. ... Inflation can overstate the value of goods businesses produce in the economy. For example, a fall in the value of the domestic currency can see businesses asking for more dollars for the same amount of produce.

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Exports-Imports

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A term used by economists to describe the amount by which an economy's aggregate expenditures at the full-employment GDP exceed those just necessary to achieve the full-employment level of GDP.

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The amount by which aggregate expenditures at the full-employment GDP fall short of those required to achieve the full employment GDP.

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Components of aggregate expenditure (AE) – defined as the total amount that firms and households plan to spend on goods and services at each level of income. Also, it can be seen that the aggregate expenditure is the sum of expenditures on consumption, investment, government expenses and net export

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a schedule that depicts the relationship between INVESTMENT and the level of NATIONAL INCOME. ... Induced investment, which takes place as rising demand puts pressure on existing capacity and raises profitability, thereby encouraging businesses to invest more.

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-investment is I. b/c it's the spending into the income-expenditures stream
-potential replacement for leakage
-if injection is greater than the leakage the C=Ig is greater than GDP and drive it upward-> below equilibrium GDP

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-saving is L.(withdrawal of spending from economy's circular flow of income and expenditures)
-causes consumption to be less than total output or GDP
-if it exceeds Injection-> C=Ig will be less than GDP and that level can't be sustained-> above-equilibrium GDP

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occurs when actual sales are more or less than businesses expected, leading to unplanned changes in inventories.

In column 7, the changes start off negative because the AE is greater than the RDO which means we are spending more than what we are making

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- GDP= C+ Ig
- changed from DI= C+S for a private closed economy (like N.K.)

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A tax imposed by the government of a constant amount or, more precisely, a tax yielding the same amount of tax revenue at each level of GDP

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Spending by firms to acquire capital goods and inventories. It is distinguished from unplanned (unexpected) investments which tie up cash in slow moving or unsaleable inventory of finished goods or merchandise.

Read more: http://www.businessdictionary.com/definition/planned-investment.html