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Unformatted text preview: the economy Determinants of Aggregate Demand-Consumers (C)-Businesses (I)-Government (G)-Rest of the world (X-M) Disposable Income (DI) = consumers income minus taxes-You can either consumer DI or save it-Consumption independent of DI autonomous consumption-Consumption does depend on DI induced consumption Two (2) statements-On average, consumption (C) increases as DI increases-An increase in C is less than the increase in DI...
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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.
- Spring '07