Fill in the blanks to make the following statements correct.

a. The equation for actual national income from the expenditure side is written as GDP = __________ .

b. The equation for desired aggregate expenditure is written as AE = ___________ .

c. National income accounts measure expenditures in four broad categories. National income theory deals with _________ expenditure in the same four categories.

d. The equation for a simple consumption function is written as C = a + bY . The letter a represents the ______________ part of consumption. The letters bY represent the ___________ part of consumption. When graphing a consumption function, the vertical intercept is given by the letter _________ , and the slope of the function is given by the letter _________ .

e. In the simple macro model of this chapter, all investment is treated as __________ expenditure, meaning that it is unaffected by changes in national income.

f. The aggregate expenditure function in the simple macro model of this chapter is written as AE = __________ and is graphed with __________ on the vertical axis and __________ on the horizontal axis.

g. An example of an aggregate expenditure function is AE = $47 billion + 0 .92 Y . Autonomous expenditure is __________ and the marginal propensity to spend out of national income is __________ . In the simple model in this chapter, the marginal propensity to spend is the same as the marginal propensity to consume because ____________ .