1 / 3

Keynesian Economics

Keynesian Economics. According to John Maynard Keynes: in the short-run, the level of GDP is determined primarily by demand. Keynesian Consumption Function. The relationship between consumer spending and income, in the short-run, has two parts: C = C a + by C = Consumption Spending;

hope-combs
Download Presentation

Keynesian Economics

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Keynesian Economics According to John Maynard Keynes: in the short-run, the level of GDP is determined primarily by demand.

  2. Keynesian Consumption Function The relationship between consumer spending and income, in the short-run, has two parts:C = Ca + by • C = Consumption Spending; • Ca = Autonomous Consumption Spending; • b = Marginal Propensity to Consume; and • y = Level of Income.

  3. Keynesian Saving Function The relationship between the level of saving and the level of income, in the short-run, is: S = - Ca + (1 - b)y • S = Consumer Saving; • Ca = Autonomous Consumption Spending; • 1 - b = Marginal Propensity to Save; and • y = Level of Income.

More Related