Chap 11 Class - 9. GDP and full employment 10. Multiplier...

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Chap 11 Class 1. Aggregate expenditures a. GDP = NI, PI, DI 2. Model Simplifications a. Investment demand vs schedule b. Investment demand vs schedule 3. AE a. AE goes up i. Output goes up b. AE goes down i. Output goes down 4. GDP=AE 5. Internationla Trade a. Net exports and aggregate expenditures b. Net exports schedule c. Net exportsand equilibrium GDP i. Postivie nex exports ii. Negative net exports d. International economic linkages i. Prosperity abroad ii. Tarifs iii. Exchange Rates 6. GDP = Cd + Ia + Xn + G a. Lump sum taxes i. Taxes affect disposable income ii. Consumption and the MPC
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7. Leakages = Sd + M + T 8. Injections = Ia + X + G
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Unformatted text preview: 9. GDP and full employment 10. Multiplier effects a. Government spending b. Lump sum taxes 11. Recessionaly gap a. Policy options 12. INflatinary gap a. Demand pull inflation 13. Us Econ late 1990 a. Too mucn investment b. Stock market bubble c. Consumer debt d. Fraudulent business practice 14. Aggrate something 15. Classical ecnonmics a. Mill snad Ricardo b. Prices adjust to maintain full employment 16. Says law a. Supply creates its own demand 17. Depression challenged the theory 18. New theory developed kaynea...
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Chap 11 Class - 9. GDP and full employment 10. Multiplier...

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