Unit 3: National Income and Price Determination

The total amount of goods and services that all four sectors are willing and able to buy at different price levels in a given _.

When the overall price level falls, the real value of money increases, making people feel wealthier and causing them to spend _.

When the price level falls, the supply of loanable funds increases, causing interest rates to _, which stimulates investment and consumption.

When the price level falls, domestic goods become relatively cheaper, leading to an increase in _ and a decrease in imports, thus increasing Net Exports.

The total output of goods and services that firms are willing and able to _ at different price levels.