Home / Questions / What effect does a higher aggregate price level have on TPE and aggregate demand in regar
What effect does a higher aggregate price level have on TPE and aggregate demand in regards to the open economy effect?
126) Explain why and increase (or decrease) in government expenditures has the same overall effect as an increase (or decrease) in Planned Investment.
127) Define the difference between the MPC and MPS. How are the two related to one another through planned aggregate expenditures and how a change in autonomous consumption will necessarily affect Saving.
128) Explain the difference between a movement along vs. a shift in planned investment. Why does such a relationship exist? Explain fully.
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