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Table of contents
The Core of Macroeconomic Theory
Aggregate Output and Aggregate Income (Y)
Slide 3
Income, Consumption, and Saving (Y, C, and S)
Saving / Aggregate Income - Consumption
Explaining Spending Behavior
A Consumption Function for a Household
An Aggregate Consumption Function
An Aggregate Consumption Function Derived from the Equation C = 100 + .75Y
Slide 10
Consumption and Saving
Deriving a Saving Function from a Consumption Function
Planned Investment (I)
Slide 14
Slide 15
Planned Aggregate Expenditure (AE)
Equilibrium Aggregate Output (Income)
Slide 18
Inventory Adjustment
Deriving the Planned Aggregate Expenditure Schedule.
Finding Equilibrium Output Algebraically
The Saving/Investment Approach to Equilibrium
The S = I Approach to Equilibrium
The Multiplier
Slide 25
Slide 26
Slide 27
Slide 28
The Paradox of Thrift