GSSC 1034 Week 12 Lecture Notes
• GDP = C + I G + (X-M)
• John Maynard Keynes; if economy (GP) in balance (equilibrium), nothing will change!
• MPC = Marginal Propensity to Consume (what fraction of extra income will the consumer spend?)
= ΔC
ΔY
• MPS = ΔS “ “ save
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