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Ch. 16 - Deriving the Aggregate Expenditures ModelWorksheetSee all chapters
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Ch. 1 - Introduction to Macroeconomics
Ch. 2 - Introductory Economic Models
Ch. 3 - Supply and Demand
Ch. 4 - Elasticity
Ch. 5 - Consumer and Producer Surplus; Price Ceilings and Price Floors
Ch. 6 - Introduction to Taxes
Ch. 7 - Externalities
Ch. 8 - The Types of Goods
Ch. 9 - International Trade
Ch. 10 - Introducing Economic Concepts
Ch. 11 - Gross Domestic Product (GDP) and Consumer Price Index (CPI)
Ch. 12 - Unemployment and Inflation
Ch. 13 - Productivity and Economic Growth
Ch. 14 - The Financial System
Ch. 15 - Income and Consumption
Ch. 16 - Deriving the Aggregate Expenditures Model
Ch. 17 - Aggregate Demand and Aggregate Supply Analysis
Ch. 18 - The Monetary System
Ch. 19 - Monetary Policy
Ch. 20 - Fiscal Policy
Ch. 21 - Revisiting Inflation, Unemployment, and Policy
Ch. 22 - Balance of Payments
Ch. 23 - Exchange Rates
Ch. 24 - Macroeconomic Schools of Thought
Ch. 25 - Dynamic AD/AS Model
Ch. 26 - Special Topics
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Aggregate Expenditures Model and Macroeconomic Equilibrium
AE Model: Graphing Macroeconomic Equilibrium
AE Model: Private Closed Economy
AE Model: Private Open Economy
AE Model and the Multiplier
AE Model: Components
AE Model: Algebraic Approach
Deriving the Multiplier Algebraically
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Next SectionDeriving the Multiplier Algebraically

Concept #1: Algebraic Approach to the AE Model

Example #1: Aggregate Expenditures

Practice: Use the following information to solve for macroeconomic equilibrium (T is a lump-sum tax): 

C = 1,500 + 0.75(Y-T) 

I = 3,400 

G = 2,600 + T 

X = 750 

M = 2,000 

T = 500

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