《初级宏观经济学》（英文版）Chapter 3 TotalExpenditure

Chapter 3 Total Expenditure GDP. Goods Market 复表经济学院

Chapter 3 Total Expenditure & GDP: Goods Market 0 10 20 30 40 90 91 92 93 94 95 96 97 98 99 00

Content o 3.1 Concepts of Macroeconomic Equilibrium o3.2 Consumption Function o 3. 3Simple Model and others ⊙34 Multiplier 复表经济学院

Content  3.1 Concepts of Macroeconomic Equilibrium  3.2 Consumption Function  3.3Simple Model and others  3.4 Multiplier

3.1 Concepts of Macroeconomic Equilibrium o Macroeconomic Equilibrium os The total supply equals the total demand Y=aggregate output the total spending= gross income 复具济学院

3.1 Concepts of Macroeconomic Equilibrium  Macroeconomic Equilibrium ❖The total supply equals the total demand Y aggregate output the total spending gross income = = =

3.1 Concepts of Macroeconomic Equilibrium--two sections model (1) supply factors of production Factors market (2) payments Family Firms (3) buying products ■■口■■■口■口口■■ Goods&labor market (4) supply goods 复表经济学院

Factors market Goods&labor market Family Firms （1）supply factors of production （2）payments （3）buying products （4）supply goods 3.1 Concepts of Macroeconomic Equilibrium——two sections model

3.1 Concepts of Macroeconomic Equilibrium o leakage: family set aside part of the income for saving o injection firms get the investment payments firms k family Expenditure on Investme consumption savings nt Financial market 复表经济学院

 leakage：family set aside part of the income for saving.  injection：firms get the investment firms family payments Expenditure on consumption Financial market Investme savings nt 3.1 Concepts of Macroeconomic Equilibrium

National income's cycling model From: Man kiw, Macroeconomics. 5th Edition, P 36 incone Markets for Factors Factor payments of Production Private saving minxia Public song Households Government Govemment investment Consumption Markets for Firm revenue Goods and Services The Circular Flow of Dollars Through the Economy This foure yellow box represents a more re version of the circular flow diagram found in Chapter 2. Each an economic actor-households, firms, and the government. Each blue box represents a type of market-the markets for goods and services, the markets for the factors of Production, and financial markets. The green arrows show the flow of dollars among the economic actors through the three types of markets. 院

National income’s cycling model From：Mankiw, Macroeconomics, 5th Edition，P.36

3.1 Concepts of Macroeconomic Equilibrium o Macroeconomic variables from expenditure VIew *Consumption ☆ nvestment Government Expenditure . Net Export YYEC/+ 复表经济学院

3.1 Concepts of Macroeconomic Equilibrium  Macroeconomic variables from expenditure view ❖Consumption ❖Investment ❖Government Expenditure ❖Net Export Y =C + I +G + NX

3.1 Concepts of Macroeconomic Equilibrium--three sections economy government Firms Famil Financial market 复表经济学院

3.1 Concepts of Macroeconomic Equilibrium——three sections economy Firms Family Financial market government

3.1 Concepts of Macroeconomic Equilibrium--four sections economy 复表经济学院

3.1 Concepts of Macroeconomic Equilibrium——four sections economy

3.1 Concepts of Macroeconomic Equilibrium AE AE I>O income=100 100 IU<O expenditure 100 100 100 Y 复学济学院

3.1 Concepts of Macroeconomic Equilibrium Y AE AE 100 100 Y income=100 expenditure =100 100 IU0