ECON 205 Lecture (4.30.2008)

ECON 205 Lecture (4.30.2008) - ECON-205 Lecture Chapter 11...

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ECON-205 Lecture 4-30-2008 Chapter 11 - Emphasis on Keynesian Economics o Consumption function Two concepts Marginal propensity to consume Marginal propensity to save - Emphasis on 268, about aggregate supply and so on… - Emphasis on Page 276 o Demand-pull inflation o Cost-push inflation Disposable income: net income after taxes Chapter 12 - Consumption function - Emphasis on Page 288 o What is real disposable income? What is consumption? What is savings? - Page 291 o Autonomous consumption - Figure 12.1: The Consumption and Saving Functions o To move to full employment, increase “C” (tax cuts, tax rebates), increase “G” (deficit), change “I” (lower rate of interest) - Page 293 o Average propensity to consume/save o Marginal propensity to consume/save - Page 298 o Consumption as a function of real GDP - Page 302 o Government (“G”) - Page 303, Figure 12.6: The Equilibrium Level of Real GDP - Page 308, Figure 12.8 (the first one) o Meaning of E1 and E2 in the graph Chapter 13
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This note was uploaded on 09/26/2009 for the course ECON 205 taught by Professor Kamrany during the Spring '07 term at USC.

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ECON 205 Lecture (4.30.2008) - ECON-205 Lecture Chapter 11...

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