Building the Aggregate Expenditures Model

Building the Aggregate Expenditures Model PowerPoint PPT Presentation


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Simplifications.... A Closed Economy Defer Government

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Building the Aggregate Expenditures Model

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1. Building the Aggregate Expenditures Model

21. consumption schedule saving schedule break-even income average propensity to consume (APC) average propensity to save (APS) marginal propensity to consume (MPC) marginal propensity to save (MPS) wealth effect expected rate of return real interest rate investment demand curve planned investment investment schedule aggregate expenditures schedule equilibrium GDP 45 degree line leakage injection unplanned changes in inventories actual investment

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