AP Econ. Chapter 25/26 Study Guide by Getzain LopezAlonzo-155004213 https://padlet.com/155004213/izojukbvwxcc7w0h en-us 2022-03-10 15:58:29 UTC 2025-12-15 22:48:30 UTC hello@padlet.com https://padlet.net/icons/png/1f4b5.png Aggregate Expenditure Model Graphical Analysis https://padlet.com/155004213/izojukbvwxcc7w0h/wish/2088656362 The 45 degree line is where the real output = aggregate expenditure.]]> 2022-03-10 16:05:48 UTC https://padlet.com/155004213/izojukbvwxcc7w0h/wish/2088656362 What is a Private Closed Economy 155004213 https://padlet.com/155004213/izojukbvwxcc7w0h/wish/2088665117 An economy where there is no imports or exports with other countries ]]> 2022-03-10 16:10:23 UTC https://padlet.com/155004213/izojukbvwxcc7w0h/wish/2088665117 Investment Demand Curve and Investment Schedule https://padlet.com/155004213/izojukbvwxcc7w0h/wish/2088677260 2022-03-10 16:16:18 UTC https://padlet.com/155004213/izojukbvwxcc7w0h/wish/2088677260 Investment Schedule 155004213 https://padlet.com/155004213/izojukbvwxcc7w0h/wish/2088677642 The planned investment on each level of output in GDP(Real Domestic Product).]]> 2022-03-10 16:16:31 UTC https://padlet.com/155004213/izojukbvwxcc7w0h/wish/2088677642 Investment Demand Curve 155004213 https://padlet.com/155004213/izojukbvwxcc7w0h/wish/2088689790 The Investment Demand Curve shows the possible investments based on the percentage of the real interest rate.]]> 2022-03-10 16:22:21 UTC https://padlet.com/155004213/izojukbvwxcc7w0h/wish/2088689790 Recessionary Expenditure Gap and Inflationary Expenditure Gap https://padlet.com/155004213/izojukbvwxcc7w0h/wish/2088691990 2022-03-10 16:23:27 UTC https://padlet.com/155004213/izojukbvwxcc7w0h/wish/2088691990 Aggregate Expenditure https://padlet.com/155004213/izojukbvwxcc7w0h/wish/2088696156 Consumption plus planned investment from business created AE. For the private closed economy equilibrium of GDP is when AE and real output are equal. In the graph its where the consumption plus investment intersect the 45 degree line. When GDP, real output exceeds aggregate spending it results in unplanned investment in inventories and than leads to a decline in output. When GDP is below equilibrium ]]> 2022-03-10 16:25:28 UTC https://padlet.com/155004213/izojukbvwxcc7w0h/wish/2088696156 Equilibrium GDP 155004213 https://padlet.com/155004213/izojukbvwxcc7w0h/wish/2094168693 Total quantity of produced goods = Total quantity of goods purchased (GDP = C + Ig) in a private closed economy]]> 2022-03-14 15:57:12 UTC https://padlet.com/155004213/izojukbvwxcc7w0h/wish/2094168693 Chapter 26- Aggregate Demand 155004213 https://padlet.com/155004213/izojukbvwxcc7w0h/wish/2098315935 The total amount of goods demanded at different price levels]]> 2022-03-16 15:42:22 UTC https://padlet.com/155004213/izojukbvwxcc7w0h/wish/2098315935 Changes in Equilibrium GDP and the Multiplier https://padlet.com/155004213/izojukbvwxcc7w0h/wish/2098323066 Calculated by dividing change in real GDP by initial change in investment. The amount the GDP equilibrium changes depends on the multiplier. An increase in aggregate expenditure schedule will shift the equilibrium upward. Conversely a downward shift will lower it. Multiplier affects the equilibrium real GDP from a shift in the investment schedule shifting the AE curve and causing a new equilibrium. Real DGP changes more than the initial change because f the multiplier effect. Change in GDP/change in investment]]> 2022-03-16 15:46:03 UTC https://padlet.com/155004213/izojukbvwxcc7w0h/wish/2098323066 Interest Rate Effect on AD 155004213 https://padlet.com/155004213/izojukbvwxcc7w0h/wish/2102171033 If Interest Rate is higher, it lowers the amount of consumer spending in the economy and lowers AD. If IR is lower, consumer spending is increased and AD increases as well. ]]> 2022-03-18 15:52:03 UTC https://padlet.com/155004213/izojukbvwxcc7w0h/wish/2102171033 Foreign Purchase Effect 155004213 https://padlet.com/155004213/izojukbvwxcc7w0h/wish/2102176542 Increase in price level reduces imports/trade with foreign countries. They buy less goods from the U.S and reduce the AD of the U.S. ]]> 2022-03-18 15:55:23 UTC https://padlet.com/155004213/izojukbvwxcc7w0h/wish/2102176542 Determinants of AD 155004213 https://padlet.com/155004213/izojukbvwxcc7w0h/wish/2102181430 2022-03-18 15:58:48 UTC https://padlet.com/155004213/izojukbvwxcc7w0h/wish/2102181430 Aggregate Supply 155004213 https://padlet.com/155004213/izojukbvwxcc7w0h/wish/2102188757 AS Immediate Short Run - Input and output are both fixed.
AG Short Run - 
AG Long Run - ]]> 2022-03-18 16:04:06 UTC https://padlet.com/155004213/izojukbvwxcc7w0h/wish/2102188757