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AGGREGATE EXPENDITURE LINE: A line representing the relation between aggregate expenditures and gross domestic product used in the Keynesian cross. The aggregate expenditure line is obtained by adding investment expenditures, government purchases, and net exports to the consumption line. As such, the slope of the aggregate expenditure line is largely based on the slope of the consumption line (which is the marginal propensity to consume), with adjustments coming from the marginal propensity to invest, the marginal propensity for government purchases, and the marginal propensity to import. The intersection of the aggregate expenditures line and the 45-degree line identifies the equilibrium level of output in the Keynesian cross.
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TWO-SECTOR AGGREGATE EXPENDITURES LINE A graphical depiction of the relation between aggregate expenditures by the two private sectors (household and business) and the level of aggregate income or production. The two-sector aggregate expenditures line combines consumption expenditures and investment expenditures. The slope of this aggregate expenditures line is based on the marginal propensity to consume, adjusted for the marginal propensity to invest if it is assumed to be induced when constructing the line. This is one of three aggregate expenditures lines based on the number of sectors included. The others are the three-sector aggregate expenditures line and the four-sector aggregate expenditures line.
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PINK FADFLY
[What's This?]
Today, you are likely to spend a great deal of time watching the shopping channel wanting to buy either any book written by Isaac Asimov or a how-to book on building remote controlled airplanes. Be on the lookout for poorly written technical manuals.
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This isn't me! What am I?
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Potato chips were invented in 1853 by a irritated chef repeatedly seeking to appease the hard to please Cornelius Vanderbilt who demanded french fried potatoes that were thinner and crisper than normal.
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"My philosophy of life is that if we make up our mind what we are going to make of our lives, then work hard toward that goal, we never lose - somehow we win out." -- President Ronald Reagan
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EPS
Earnings Per Share
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