formulas Flashcards
(9 cards)
1
Q
mps
A
1-mpc
2
Q
autonomous consumption
A
y-intercept or consumption-mpc*income
3
Q
mpc =
A
change in consumption/change in income
4
Q
multiplier (using mpc and mps)
A
1/(1-mpc) or 1/mps
5
Q
multiplier (using change in stuff)
A
change in equilibrium output/change in autonomous spending
6
Q
average propensity to consume =
A
total consumption spending/total income
7
Q
when aggregate output is < the sum of all stuffs
A
unplanned decrease in inventories
8
Q
when total output > addition of stuffs
A
reduce output
9
Q
appreciation of $ makes exports __ and imports __
A
decrease, increase
