AP Economics – 3/27/19
I. Bellwork
https://financechallenge.unl.edu/Michigan/Practice
After the practice, I will assign you a password for the real assessment
II. Objectives
- Describe the multiplier process by which initial changes in spending lead to further changes in spending
- Use the consumption function to show how current disposable income affects consumer spending
III. Chapter 16 – The Multiplier
- Marginal Propensity to Consume MPC = (Δ C/Δ Yd)
- Spending Multiplier 1/(1-MPC)
- Consumer Spending Yd = C + S & MPC + MPS = 1
- Current Disposable Income and Consumer Spending
IV. Homework 16.1 & 16.2 WS on iLearn
V. Section 5 Graphing Exam
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