多恩布什 Chap009.docVIP

9 Income and Spending focus of the chapter ? This chapter takes a closer look at the way that changes in the goods market affect aggregate demand by examining the link between income and spending(i.e., we use the fundamental national income identity (Y = C + I + G + NX) to analyze the way that changes in consumption affect output. We treat both income and consumption as endogenous variables. ? A basic result is that an increase in autonomous spending will increase output by an amount greater than that of the spending increase. section summaries 1. Aggregate Demand and Equilibrium Outpu