The demand for oods z≡C+|+G+X-Q If The economy is closed then ●Z三C+|+G 2003-6-29 6
2003-6-29 6 The Demand for Goods Z≡C+I+G+X-Q If The Economy is closed,then Z≡C+I+G
Consumption(c) S CEC(YD 十 Yp is disposable income ●C CotC 0 1YD (3.1) C1 is called the marginal propensity to consume o C is autonomous consume ●YD≡YT ●C=c+c1(YT) (3.2) 2003-6-29 7
2003-6-29 7 Consumption(C) C=C(YD ) (+) ⚫ YD is disposable income C= c0+c1YD (3.1) ⚫ c1 is called the marginal propensity to consume ⚫ c0 is autonomous consume YD ≡ Y-T C=c0+c1 (Y-T) (3.2)