Definition Page

Macroeconomics

D	Total
a	Amounted consumed independent of Income
Aggregate Demand	Consumer Demand + Firm Demand + Government Demand
Aggregate Expenditure	Aggregate Expenditure E = C+I+G+(X-Z)
APC	Average Propensity to Consume – proportion of income consumed and is calculated by dividing consumption expenditure by the level of disposable income APC = MPC long run MPC < APC short run due to lag before consumption adjusts to changes in income
b	Amount consumed dependent on Income – Consumptions change as Income changes (Marginal Propensity to Consume)
BRG	Business Related Earnings
C	Consumption - Most important factor influencing consumption is income
E	Expenditure E = C+I+G+(X-Z)
G	Government Expenditure excluding transfer or payments GDE = Y = C+I+G
GDE	Gross Domestic Expenditure
GNE	Gross National Expenditure GNE = Y = C+I+G+(X-Z)
GNI	Gross National Income Yd-+ Net Taxes + BRE
GNP	Gross National Product Y = C+I+G+(X-Z) Nominal GNP = Current Prices Real GNP = Constant Prices
I	Investment
Investment Multiplier
MPC	Marginal Propensity to Consume – Change in consumption that accompanies a change in income C – Short Run – C = a+bYd C – Long Run – C = bYd
Multiplier	Multiplier is derived from the slope of the consumption function
Q	Potential Output
S	Savings
T	Taxes
X	Import
Y	Actual Output
Y	C +I
Y	C+ S
Y	Gross National Product
Y	Total Income / National Income
Yd	Disposable Income (Income less taxes + transfers)
Z	Export