1. Lectures in Macroeconomics- Charles W. Upton 1 Consumption A Brief History C =  + βY

2. Consumption-A Brief History 2 C Y C=  +  Y  John Maynard Keynes

3. Consumption-A Brief History 3 C Y C=  +  Y  John Maynard Keynes “As a rule and on the average…” Consumption increases as income rises % of income consumed declines as income rises

4. Consumption-A Brief History 4 C Y C=  +  Y 

5. Consumption-A Brief History 5 C Y  C=  +  Y

6. Consumption-A Brief History 6 C Y  C=  +  Y

7. Consumption-A Brief History 7 In Summary It doesn’t work. It was back to the drawing board.

8. Consumption-A Brief History 8 End ©2005 Charles W. Upton. All rights reserved