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Chapter 31: Aggregate Expenditure Model (closed economy) - Coggle Diagram
Chapter 31: Aggregate Expenditure Model
(closed economy
)
Closed economy
Excl. International trade and public sector
Great Depression- Keynes Model
Prices are fixed
Equilibrium GDP
Tabular Analysis
Aggregate Expenditures
Disequilibrium
Real Domestic Output
Graphical Analysis
Assumptions and Simplifications
Other features of Equilibrium GDP
Savings equal planned Investment
Injection
Leakage
No unplanned changes in Inventories
Adding the Public sector
Taxation and Equilibrium GDP
Government Purchases and Equilibrium GDP
Adding International Trade
Net Exports and Equilibrium GDP
The Net Export Schedule
Net exports and Aggregate Expenditures
International Economic leakages
Consumptions and Investment schedules
planned investment
Investment Schedule
Equilibrium Vs Full-Time Employment GDP
Keynes Solution
Inflationary Expenditure GAP
Recessionary Expenditure GAP