The Word Economists Use When Referring to "Additional" or "Incremental

question 191

Short Answer

The word economists use when referring to "additional" or "incremental" units of output or costs is _________.

Grasp the significance of meaning in the communication process and the role of feedback in ensuring message comprehension.

Know the stages of the writing process and the importance of spending sufficient time on each phase.

Comprehend the concepts of encoding and decoding in the communication process.

Understand the selection of communication channels and the effect of noise in the communication process.

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Definitions:

Marginal Propensity

The incremental change in spending (consumption or saving) that occurs with a change in disposable income.

Multiplier

An economic factor that quantifies the impact of a change in investment, government spending, or other financial activity on the overall economy.

Marginal Propensity

Refers to the increase in personal consumer spending that occurs with an increase in disposable income.

Aggregate Expenditure

The total amount spent on goods and services in an economy at a given level of income during a specific period.