Aggregate Expenditures Curves

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	Aggregate Expenditures curve: The relationship between Aggregate Expenditures and income; positively sloped because income induces spending. Sometimes known as a Keynesian cross diagram. ______________________________________________________________________ Aggregate Expenditures [Y]: The sum of consumption [C], gross private domestic private investment [I], government purchases [G], and net exports [X-M = exports minus imports]. Thus, Y = C + I + G + [X-M]. In equilibrium, Aggregate Expenditures (Y) equals Aggregate Production (C + S + T), so that Y = C + I + G + (X-M) = C + S + T.
________________________________________________________________________________________________________________________________________________ Author: Ralph Byrns
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