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24 Cards in this Set
- Front
- Back
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What are the leakages?
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Savings, Net Taxes, Imports
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What are injections?
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Investments, Government Purchases, Exports
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Disposable Income
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aggregate income - NT
Consumption + Income |
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Net Taxes
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Taxes - Transfer Payments
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What is Respiration?
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exchange of gases b/wn organism and environment
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What are the leakages?
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Savings, Net Taxes, Imports
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What are injections?
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Investments, Government Purchases, Exports
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Disposable Income
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aggregate income - NT
Consumption + Income |
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Net Taxes
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Taxes - Transfer Payments
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Planned Investment
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the amount of new physical capital
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Unplanned Investment
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unintended changes in business inventories
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Actual Investment and Formula
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all investment that occurs during a year
I = Ip + Iu |
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Consumption
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personal consumption expenditures, final goods
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Consumption Function(Look at Graph)
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relationship between Real DI and Real Consumption
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MPC and Formula
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additional tendency to spend
change in consumption / change in DI |
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MPC and the Formula
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additional tendency to save
change to save / change in DI |
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Non-income Determinants of Consumption
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Change in Net Wealth, Change in Price Wealth, Change in Interest Rate,
Change in Expectations |
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Investment Relation to DI
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autonomous
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Planned Investment Function
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shows the autonomous relationship between real income and real DI
Non-income Determinants shift it up and down |
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Non-income Determinants of Planned Investments
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Change in Interest Rate,
Change in Business Expectations |
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DI Relation to Government
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-are depended on public officials elected to government for shifts
-autonomous to DI -Graph the same as Investments |
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Net Taxes
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- added to GP if budget surplus and subtracted from GP if budget deficit
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DI Relation to Net Exports
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autonomous to DI
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Non income Determinants of Net Exports
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Change is U.S. Price Level,
Change Foreign Income Level, Change in relative value of the U.S. Dollar |
