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.

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

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

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

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

Link to ISR Latest news release Link to RSQE forecastforecast

Example of U-M’s Consumer Survey, 2002

Formulas and Definitions for The Multiplier. p. 314

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)

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

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

Links to RSQE

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