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This Concept Map, created with IHMC CmapTools, has information related to: Chapter 4 Aggregate Demand & Multiplier, Income?National Output/GDP Increase/Decrease Price & Quantity, Aggregate Demand Comprises Government Demand, Decrease Production Decrease Aggregate Supply/ National Income for a Profit Maximizing Firm, Marginal Propensity to Consume (MPC) Increase/decrease Consumption Demand, Inventories- Signaling service Leading Indicator Low Increse Production, Increse Production Increase Aggregate Supply/ National Income for a Profit Maximizing Firm, Excess Demand Decrease Inventories- Signaling service Leading Indicator, Income?National Output/GDP Increase/Decrease Quantity, Excess Demand Decrease Inventories- Signaling service Leading Indicator, Aggregate Supply/ National Income for a Profit Maximizing Firm Signals Adjustment Price, Income?National Output/GDP Increase/Decrease Disposable income, Inventories- Signaling service Leading Indicator High Decrease Production, Aggregate Demand Comprises Exports Demand, Aggregate Supply/ National Income for a Profit Maximizing Firm Signals Adjustment Quantity, Consumption Demand Multiplyer 2 Increased Consumer Spending Excess Demand, Income?National Output/GDP Increase/Decrease Price, Disposable income Increase/decrease Marginal Propensity to Consume (MPC), Income?National Output/GDP Leakage Tax, Government Demand Multiplyer 1 Increase Government spending (expansionary fiscal Policy) Decrease Taxes (Fiscal Policy) Side effect: "Government Budget Deficit as a tool to maintain the Economy at Full Employment" Excess Demand, Inventories- Signaling service Leading Indicator Decrease Aggregate Supply/ National Income for a Profit Maximizing Firm