The Keynesian ModelCHAPTER

18

2Tucker Economics for Today, 4e • Ch 18 The Keynesian Model© 2005 Thomson/South-Western

EXHIBIT 2 THE CONSUMPTION FUNCTION

3Tucker Economics for Today, 4e • Ch 18 The Keynesian Model© 2005 Thomson/South-Western

EXHIBIT 4 CONSUMPTION FUNCTIONS FOR TWO MARGINAL PROPENSITIES TO CONSUME

4Tucker Economics for Today, 4e • Ch 18 The Keynesian Model© 2005 Thomson/South-Western

EXHIBIT 5 U.S. PERSONAL CONSUMPTION AND DISPOSABLE INCOME, 1933–2003

Source: Bureau of Economic Research, http://www.bea.doc.gov/bea/dn/nipaweb/SelectTable.asp?Selected-N.

5Tucker Economics for Today, 4e • Ch 18 The Keynesian Model© 2005 Thomson/South-Western

EXHIBIT 6 MOVEMENT ALONG AND SHIFTS IN THE CONSUMPTION FUNCTION

6Tucker Economics for Today, 4e • Ch 18 The Keynesian Model© 2005 Thomson/South-Western

EXHIBIT 7 A COMPARISON OF THE VOLATILITY OF REAL INVESTMENT AND REAL CONSUMPTION, 1965–2003

Source: Bureau of Economic Analysis, http://www.bea.doc/bea/dn/nipaweb/SelectTable.asp?Selected=N, Table 1.1.1.

7Tucker Economics for Today, 4e • Ch 18 The Keynesian Model© 2005 Thomson/South-Western

EXHIBIT 8 MOVEMENT ALONG AND A SHIFT IN A FIRM’S INVESTMENT DEMAND

8Tucker Economics for Today, 4e • Ch 18 The Keynesian Model© 2005 Thomson/South-Western

EXHIBIT 9 THE AGGREGATE INVESTMENT DEMAND AND AUTONOMOUS INVESTMENT DEMAND CURVES

9Tucker Economics for Today, 4e • Ch 18 The Keynesian Model© 2005 Thomson/South-Western

EXHIBIT 10 AGGREGATE EXPENDITURES FUNCTION DATA