25 Nov 2021
Problem 22
Page 890
Section: CRITICAL THINKING QUESTIONS
Chapter D: The Expenditure-Output Model
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25 Nov 2021
Introduction
In economy, 'Aggregate expenditure' is defined as the current value of all the finished goods and services in the economy, it is the sum total of all the expenditures undertaken in the economy by the factors during a given time period whereas, 'Potential GDP' is an estimate of the value of the output that the economy would have produced if labor and capital had been employed at their maximum sustainable rates.
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