Lesson · Year 12 - Economics (ATAR)
The Aggregate Expenditure Model & the Multiplier
The components of aggregate expenditure (C + I + G + (X − M)) and their determinants; the consumption function, MPC and MPS; the aggregate expenditure model and macroeconomic equilibrium including the role of inventories; the multiplier and the multiplier process; and the impact of a change in an AE component on equilibrium income and output.
This lesson covers
- C08-U4T2 The aggregate expenditure model