CannonEssays

1. Consumption Constant Multiplier:

2. Consumption Function:

3. Equilibrium Output And Income:

4. Expenditure Gap:

5. Full-Employment Constraint On Output:

6. Investment Multiplier:

7. Marginal Propensity To Consume:

8. Shortfall Unemployment:

9. Sum of Series Approach to Multipliers:

Papers

A Simple Macroeconomic Model

Consumption Constant Multiplier:

The change in aggregate output and real income divided by the change in the consumption constant provoking it. (The consumption constant is the a, in the equation C = an + bYd.)

Consumption Function:

The function relating consumption expenditures to their determinants.

Equilibrium Output And Income:

A situation in which there is no tendency for aggregate output and real income to change.

Expenditure Gap:

Aggregate output demanded at existing prices less full-employment output.

Full-Employment Constraint On Output:

The level of output produced when the unemployment rate equals the natural rate of unemployment.

Investment Multiplier:

The change in equilibrium aggregate output and real income divided by the change in the investment expenditures constant which provokes it.

Marginal Propensity To Consume:

The coefficient of disposable income in the consumption expenditure function-4C/4Yd.

Natural Unemployment: 

Frictional, seasonal, and structural unemployment.

Shortfall Unemployment:

Unemployment which occurs because of a shortfall of aggregate demand.

Sum of Series Approach to Multipliers:

The approach which expresses the eventual change in aggregate output and real income as the sum of the response to the initiating expenditure disturbance plus the responses to the induced effects on consumption expenditures which occurs in a series of rounds as output and income change.