1 / 11

Chapter 11. Income and Expenditure

Chapter 11. Income and Expenditure. Link to syllabus. Skip Income-Expenditure Equilibrium, pp. 326-331 (a.k.a. ‘The Keynesian Cross’). Also , skip the accelerator model of investment p. 323, and changes in inventories. Previews of (Still) Coming Attractions!.

Download Presentation

Chapter 11. Income and Expenditure

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Chapter 11. Income and Expenditure Link to syllabus Skip Income-Expenditure Equilibrium, pp. 326-331 (a.k.a. ‘The Keynesian Cross’). Also, skip the accelerator model of investment p. 323, and changes in inventories.

  2. Previews of (Still) Coming Attractions! The AD-AS Model. Fig. 12-11, p. 361

  3. Further Previews of Coming Attractions !Shifts of Aggregate Demand Fig. 12-4, p. 346 Caused by changes in Business Investment or Government Expend.

  4. Consumption Function, Figures 11-1 and 11-2, pp. 316-317 Actual data for 2009, by deciles

  5. Link to ISR http://www.isr.umich.edu/ Latest news release Link to RSQE forecast

  6. Example of U-M’s Consumer Survey, 2002

  7. Formulas and Definitions for The Multiplier. p. 314

  8. Rounds of Increases of Real GDP. ΔAAS=100, MPC=0.6 p. 313 Thus the multiplier is 250/100 = 2.5 which is 1/(1 – 0.6)

  9. Table 11-2 p. 314. Investment, Consumption, and Real GDP in the Great Depression.

  10. Fluctuations in Consumption and Investment Spending During Recessions. Fig 11-6, p. 322 Spending on business investment is much more unstable than consumption

  11. Links to RSQE http://rsqe.econ.lsa.umich.edu/index.php?page=forecasts&name=US http://rsqe.econ.lsa.umich.edu/Docs/summary.pdf

More Related