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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