Examlex
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Price Level
The average of current prices across the entire spectrum of goods and services produced in the economy, which can affect purchasing power and inflation.
Aggregate Expenditure Line
A graphical representation of the total spending in an economy, including consumption, investment, government, and net exports, at various levels of income.
Marginal Propensity
The proportion of an additional increment of income that is spent on consumption. It reflects the change in consumption resulting from a change in income.
Multiplier
A factor by which an initial change in spending will alter total economic output by more than the initial monetary amount.
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