Lecture notes BBA in Logistics and Supply chain management (PMAC)

Chapter 17:
A simple Keynesian
model of the
economy




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Master ECONOMICS FOR SOUTH AFRICAN STUDENTS
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CHAPTER 17: A SIMPLE KEYNESIAN MODEL OF THE ECONOMY

, CHAPTER OUTLINE
LEARNING OUTCOMES
17.1 PRODUCTION, INCOME AND SPENDING
17.2 THE BASIC ASSUMPTIONS OF THE MODEL
17.3 CONSUMPTION SPENDING
17.4 INVESTMENT SPENDING
17.5
THE SIMPLE KEYNESIAN MODEL OF A CLOSED ECONOMY WIT
HOUT A GOVERNMENT
17.6 THE ALGEBRAIC VERSION OF THE SIMPLE KEYNESIAN MODEL
17.7
THE IMPACT OF A CHANGE IN INVESTMENT SPENDING: THE
MULTIPLIER
17.8 THE SIMPLE KEYNESIAN MODEL: A BRIEF SUMMARY
IMPORTANT CONCEPTS
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Master ECONOMICS FOR SOUTH AFRICAN STUDENTS
title
style
CHAPTER 17: A SIMPLE KEYNESIAN MODEL OF THE ECONOMY

, LEARNING OUTCOMES
Once you have studied this chapter you should be able to
• explain the equilibrium level of total income in the economy
• describe the major features of the consumption function
• indicate what the determinants of investment are
• determine the equilibrium level of income in an economy
which consists of households and firms only
• describe what the multiplier is and explain how it works




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Master ECONOMICS FOR SOUTH AFRICAN STUDENTS
title
style
CHAPTER 17: A SIMPLE KEYNESIAN MODEL OF THE ECONOMY

, LO: explain the equilibrium level of total income in the economy



17.1 PRODUCTION, INCOME
AND SPENDING
The three major flows in the economy




Click to
edit
Master ECONOMICS FOR SOUTH AFRICAN STUDENTS
title
style
CHAPTER 17: A SIMPLE KEYNESIAN MODEL OF THE ECONOMY