Four components of aggregate demand

Keynesian aggregate expenditure

Read Chapter 13: Consumption and the Aggregate Expenditures Mode in Principles of Macroeconomics”. This chapter will show you how the aggregate demand curve can be derived from the aggregate expenditures model. Note that aggregate expenditures relate to the summation of planned levels of spending by consumers, businesses, government agencies, and global trade partners at a given price level. Notice also how the slope of the aggregate expenditures curve relates to the multiplier.

When you’re done share your understanding of the aggregate expenditures model with your classmates by writing a blog post. Remember to tag (WordPress) or label (Blogger) your blog post using the course tag: maec102. Does this model make sense to you? Do you have any questions? Sharing with classmates can be a valuable way to clear up your own thoughts and get help from other learners.