宏观经济学的HUBBARD_MACRO_SG_11.pdfVIP

Chapter11(23)

OutputandExpenditureinthe

ShortRun

ChapterSummary

Chapter10examinedthedeterminantsoflong-runeconomicgrowth.Intheshortrun,however,the

economyexperiencesfluctuationsineconomicactivity,orbusinesscycles,aroundthelong-runupward

trendinrealGDP.Aggregateexpenditure(AE)isthetotalamountofspendingintheeconomy.The

aggregateexpendituremodelfocusesontherelationshipbetweentotalspendingandrealGDPinthe

shortrun,assumingthatthepricelevelisconstant.Thefourcomponentsofaggregateexpenditureare:

1.consumption(C)

2.plannedinvestment(I)

3.governmentpurchases(G)

4.netexports(NX)

WhenaggregateexpenditureisgreaterthanGDP,thereisanunplanneddecreaseininventories,which

aregoodsthathavebeenproducedbutnotyetsold,andGDPandtotalemploymentwillincrease.

Thefivedeterminantsofconsumptionare:

1.currentdisposableincome

2.householdwealth

3.expectedfutureincome

4.thepricelevel

5.theinterestrate

Theconsumptionfunctionistherelationshipbetweenconsumptionanddisposableincome.The

marginalpropensitytoconsume(MPC)isthechangeinconsumptiondividedbythechangein

disposableincome.Themarginalpropensitytosave(MPS)isthechangeinsavingdividedbythe

changeindisposableincome.Thedeterminantsofplannedinvestmentareexpectationsoffuture

profitability,therealinterestrate,taxes,andcashflow,whichisthedifferencebetweenthecashrevenues

receivedbyafirmandthecashspendingbythefirm.

The45°-linediagramshowsallthepointswhereaggregateexpenditureequalsrealGDP.Onthe45°-line

diagram,macroeconomicequilibriumoccurswherethelinerepresentingthe