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Rationalize the denominator and simplify. Assume that all variables represent positive real numbers.
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Marginal Propensity
The ratio of change in an economic variable (such as consumption) that occurs with a change in another variable (such as income).
Investment Accelerator
The concept that suggests investment spending in an economy may increase due to growth in overall economic activity, boosting further growth.
Aggregate Demand
Total expression of need for goods and services within an economic environment, anchored at a specific total price level across a designated duration.
Aggregate Demand
The total amount of goods and services that all consumers, businesses, and government entities are willing and able to purchase at various price levels in an economy.
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