ECON 101 Lecture Notes - Lecture 1: Parsec, Autonomous Consumption, Aggregate Demand
Document Summary
Remember in the short run gdp is demand determined the ad curve. I find a way to calculate short run gdp t of shifts in ad. Our approach to this is based on flow t the multiplier the to calculate some kinds idea of the circular. Multiplier effect as exogenous expenditures happen t the economy multiple times because of flow they create an impact on. Ad t shout run than the expenditures turn over their circular in this relies on the circular flow of income a expenditure as this. 0. 90 this expenditure becomes somebody turn spend most but not all of it time which the extra. In total bi of expenditure betomes the circular. Aggregate demand they don"t depend on y the multiplier effect works w exogenous parts of f i x these may depend on other variables. Cr m do depend on y atleast in part. Consumption function tax income but how recall that this depends on after.
