The Increase in Aggregate Planned Expenditures Divided by the Change

question 52

Multiple Choice

The increase in aggregate planned expenditures divided by the change in national income that brought it about is called the

• A)average propensity to consume.
• B)average propensity to save.
• C)marginal propensity to spend.
• D)marginal propensity to save.
• E)marginal propensity to consume.

---

Definitions:

Bureau of Labor Statistics

A U.S. government agency that collects, analyzes, and disseminates essential economic information to support public and private decision-making.

Employed Category

A classification of individuals who are currently working in a paid job, whether full-time or part-time.

Natural Rate

Often referred to as the natural rate of unemployment, it is the level of unemployment at which there is no cyclical or deficient-demand unemployment, commonly seen as the equilibrium state of the labor market.

Unemployment Rates

The quantity of individuals in the workforce who are unemployed and making efforts to find job opportunities.