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Unformatted text preview: Expenditure Multiplier ISLM Model Y AD = C + I + G + NX Aggregate Demand: 1. C : Consumer expenditure of goods and services
2. I : Planned investment expenditure by ﬁrms on capital goods,
by households on new homes
3. G : Government expenditure on goods and services
4. NX : Net exports, expenditure by foreigners on domestic goods
and services minus domestic expenditure on foreign goods and
services Total demand for an economy’s output is the sum of four
types of spending: Demand for Goods and Services Aggregate Output ...
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This note was uploaded on 02/14/2012 for the course ECON 3310 taught by Professor Dix during the Fall '08 term at York University.
- Fall '08