Define the Seven Classes of Assets Used in Allocating Basis

question 101

Essay

Define the seven classes of assets used in allocating basis when using the residual method.

Understand the dynamics of the consumption function, including the marginal propensity to consume (MPC) and save (MPS).

Recognize the role of autonomous spending in shifting the aggregate demand and expenditure curves.

Discern the implications of changes in the price level for exports, imports, and net exports.

Understand the concept of equilibrium in the context of aggregate expenditure and real GDP.