{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Econ103 Discussion03 - 2 Consumption and Investment(Chapter...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
https://netfiles.uiuc.edu/ebagby2/econ103/ September 10, 2010 Econ 103 — Macroeconomic Principles TA Emilie Bagby 1. Real vs. Nominal GDP (Chapter 4 and Reading 3) - Consumer Price Index (CPI) & GDP Deflator Year # deflator (or index) = Year # current price x 100 Base year price Real GDP = Nominal GDP x 100 GDP Deflator (or index) - GDP per Capita
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 2. Consumption and Investment (Chapter 6 and Reading 3)- Average vs. Marginal Propensity to Consume - Average vs. Marginal Propensity to Save - Consumption Function, Marginal Propensity to Consume and Autonomous Consumption C = C O + C 1 *y d C O = autonomous spending (the amount we would spend if our income was O) C 1 = Marginal Propensity to Consume (MPC) y d = disposable income....
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online