According to the baseline multiplier model, aggregate consumption is a function C = co +cqY of aggregate income Y. The term CO represents The impact of the general price level. O The effects of investment and government spending which are summarised in a reduced form way in this model. O Variables that affect consumption levels (primarily) of households engaging in consumption smoothing behaviour, such as permanent income, the target level of savings and expectations over future income. O The consumption level when output equals 0.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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According to the baseline multiplier model, aggregate consumption is a function
C = co +cqY
of aggregate income Y. The term
CO
represents
The impact of the general price level.
The effects of investment and government spending which are summarised in a
reduced form way in this model.
O Variables that affect consumption levels (primarily) of households engaging in
consumption smoothing behaviour, such as permanent income, the target level
of savings and expectations over future income.
O The consumption level when output equals 0.
Transcribed Image Text:According to the baseline multiplier model, aggregate consumption is a function C = co +cqY of aggregate income Y. The term CO represents The impact of the general price level. The effects of investment and government spending which are summarised in a reduced form way in this model. O Variables that affect consumption levels (primarily) of households engaging in consumption smoothing behaviour, such as permanent income, the target level of savings and expectations over future income. O The consumption level when output equals 0.
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