Unit 3: Macroeconomic Policy

Lesson 10a: Fiscal Policy - The Spending Multiplier

Assignments: Readings

Ch. 10, pp. 219-225, "The Income-Consumption and Income-Saving Relationships", "The Nonincome Determinants of Consumption and Saving", (19th, 191-198) Ch. 10, pp. 232-235, "The Multiplier Effect", (19th, 204-208) Ch. 12, pp. 274-281"Equilibrium in the AD-AS Model", "Changes in Equilibrium" (19th, 244-248) The Spending Multiplier in Reverse Lecture Outline

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