The Aggregate Expenditure Model

4. the factors affecting each of the components of Aggregate Expenditure (AE), i.e. AE=C+I+G+(X-M)

5. the relationship between the consumption function, the marginal propensity to consume and the marginal propensity to save

6. the Aggregate Expenditure (AE) model

7. the concept of macroeconomic equilibrium, including the role of inventories

8. the concept of the multiplier

9. the multiplier process using the Aggregate Expenditure (AE) model

10. the impact of changes in the components of aggregate expenditure on the equilibrium level of income/output using the AE model