Exercises Linear equations for the consumption and saving schedule take the general form C=a+bY and S=-a+(1-b)Y, where C, S and Y are consumption. saving and national income respectively (1) Use the given data to develop specific numerical values for the consumption and saving equations. Write the using these values (2)what is the economic meaning of b? what is the economic meaning of(1-b)? 01-08-08
01-08-08 1 Exercises • Linear equations for the consumption and saving schedule take the general form C=a + bY and S=-a+(1-b)Y, where C, S and Y are consumption, saving and national income respectively. (1) Use the given data to develop specific numerical values for the consumption and saving equations. Write the using these values. (2) what is the economic meaning of b? what is the economic meaning of (1-b)?
Household disposal Consumption(C income Dn 100 90 200 170 01-08-08
01-08-08 2 Household disposal income (DI) Consumption (C) 100 90 200 170
question Briefly explain the concept of consumption function Explain how changes in net wealth and the price level alter the consumption function 01-08-08
01-08-08 3 question • Briefly explain the concept of consumption function. • Explain how changes in net wealth and the price level alter the consumption function
GDP=C+I+G+NX
GDP=C+I+G+NX
Investment Investment refers to the expenditures on new plants, capital equipments, machinery and so on 投资指对新工厂、新机器、新设备 等的支出。 01-08-08
01-08-08 5 Investment • Investment refers to the expenditures on new plants, capital equipments, machinery and so on. • 投资指对新工厂、新机器、新设备 等的支出