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Date/

(H -4 DELTA \Pg No

SzMAR
foR
KEYNCSIAN
£OUIIRRIOM
MOpeL
QUIPUI
(ONDZII0N
Pxisb Ohen
Eçuilbrium
lQuols do the apçrepoe olemcno

TOolaulput AgeDemmond

Oemmond kor broLDb


Hewenetd Doiree Servi

Censmpa em busines
inst demand

Asummpiens. ne cenideyp
Ore
Expab
Eenenmy ne kneipn hade
pue
A) VariOb)e Ore

als mmeasure Nohonal inom e

focherServices (onsumed
Facter Strvies pai in toxes
Service save

facder dlividends
Date
DELTA Pg No

L
Y (on be

facer Seruies COmburmed


Realized inueshnent
Grevt Sh end ino

NOnena/ Inceme (Y)


CLersis kacher serv

Meudhold Businen CeLhey


(ensumphontt) subblid
seruie)
eLensts Focter

gouings(s) finonia Morkes

Toxes (T)

z The innerlecfp debrch a prees cChErthy


fmms bredute eulput()hch enerole
omunt
he HH sechons inhun enerolDwhich
de omond kor the utput ()
Tax Heus aYe leokaes
Saingthe cen hal laOp
while
injechem
Tovesment
inthe czending
Dato
DELTA Pg No

(on be
Iepresenrd

lso
numtialy
Y (1 S+ T

that the Jeakaoe


MeanS
toat is caused by Saun ngs
the
TO Xe by inveshnent
Injechens made
Thus the
Demand shending
and
TOol (E)
the Telol eulput
GIput (Y),

(OMPONENIS
lesummbbeg
The Specifterm
inceme relahenship 'S terooed
Funchern,
Tin (onsup hen per un?
b
Dispgsable
wben dish90 ble

b:
b
Date
DELTA\Pg No

Cotbo

DTsbeable

b toLmmed Magina
This
Pcensy, the chonge
(emsumþhan due e Change
dispesa ble
Th's (an be explained QumEncall

AL
Mer e ((-+b) the Mar ina)
to_saR chang e
Protzensiny
saiag cue
Dishosoble inceme
to change
Date/
DELTA Pg No

Dshosobe Inceme

Sauing lurue is inihally neçohve


because tnhol
Ioceme.
incenne

(b) Inuhment
the expendlur e incurreol
þuschan
ropikal nochinS
þlons, Cquipment ek
Reþreent inveshmnent
CUrrent Oulbut
tnreae n preduthn
Invesk
(9pociy
Deesian
) Fxpecka neñs
0) Int ret
) RisK d Rerin acer
4) Orponisa n'0nqt
endiueo
represenb b7tIt) lo-
ChanQe
in
aumemas
Changein
the
iuif exþend the iS
I*(n) 0-bT+
a-bl+1+
b7. b- at
expendiure Auenemas
Uarioble
INcoME fouLzARuM DEIERMININa
cliectly
ncme 9M
thusthe Amakes
the cemhled
by
eXþendiures u
elemen SheaaltenemLs
ing he iS J
No
\PgDELTA
Date/
Dato/

(I

pereçok

ab

Tnlom e

Jemmpn

YL
Intee

obae praphs Sheus the


equilibriuom Inceme
Qt
S peint here
açgreçahe expendhui9

In the
L,n,s,1
(ensJant becausR VQlue d )
depend en
their
the inceme (Y)
Date)
DELTA \Pg No

the oulbrum Oulfput


(HANGIES £oUILIBRZUM INCOME

Changea Due to Lneshonent

a-bTotZt

Ineme
I,cn,s, T

HPS
ehange (auses
|-b
chanpe. tneeme
Date
DELTA\Pg No

t In tthe Obe grash, the inhal


ottoined ot poiat A
increat in
to On
Io toI ieod o a shih
xpendlurt
naeosw hem to Y
Thus. the eguilibrum

Change ue te to

ti,

a -bT4o
ti

St To
Date/
DELTA \Pg No

|-b
(-b)AI

I-b

abae raphs, Qn tocrease


toxes To to
Qonreoak expendure schedul
Shifh
dewnurord (Ita)o to
Eouilibium homþeint Ato
fqulibiunn falls hem

Saung L7, s,7graph,


shin
Sto Equlibrnum
STA B7uZA20N
Pozcy
incexne
Chonçes feed
doxes the Shond ing
Insyummert (on be
Shabilize voie d
enpendtht
Date/
DELTA \Pg No

nton?e

J-1J

Beginning
0 decline in aubenYng eXpendire
Io to I Shifs the
New

(en nsoha
Gaert Shending
Shih the eMpendíure
boct to
((t,ta,)
shmment inve
dine shfn paut
just
usluld
ln(me equith1iunm treoe in
PUtfput praured
deman
Glr and dem in An
Imapert inchonge unt
due aDe Change
in sipni7ien
lrepens
e hy>Hargina| Cemhenent
Qn haue
dependo demand
orts the hot
X-Z
xchange
oien
open
the that nhis
NESZpN kE IMPORTS
No
DELTA
Pg
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decline tohceme
eqLeilubrum Cause and kol
dernesh'c demand
the Thus,
emec km demmand inshi7t
epresent mmped in
incemeEguilbrium
decine will demnand
nrea QulennmO
No
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-
..Bunk Por;u - The 5ociol .Nctebock
Bunk Pager - The Social Noteboo

MaNEraRY
MoNETAKY IupuneNCES M

Tnceme Tot rQkes are ofected


Changes in the
be increaN
Supbly e
uhaly
Meney
(reore
which inerest
b As int rote ollS iaust. 'S_ incveonol
this inrease (auses nceme
Thua, the LM curve

La s ot inkrest Qhe
incerme leyel of hoint E
increaue in
Shís
mnty supbly
Inceme
cklyincreas red ndu acetne-
'seN
demand
tly bett deonaad bishing
The
fikes.
rae inkrest Qea.
htSChcduleFo
shending Tnaease
Stnding
TS TN INeNCNCes REAL
EDULE
Nctebock Socicl The Poçes- Bunk
Bunk Pager-- The
Social
(b) Change
Noteboh
sh dhe Is Sche dule do the
Ioem e kolls a). toxes riSe
hecause
dsfeoable
Conummbhendo deline.
meny
bomddemaho
Oemandecd
declip cy and
Thas sht
iOres Oe efall

Int

Autenonmes Changes Tnuesnen


Th means sht
funchen eiuinQ he nvesert

schedule
inuesmet Shb the 7S
Bunk Pcger- The Sccicl Nctebock

Tnceme kolls because ioNES honent


ioterestrate declin es
Oninccmne - Indu (e o
incenmne alls
dlecline in
The (ause
demond de mond to

nst
IHe
nceme his
ment inerest |w
theight skebI
to The
the Shih (urve LM
dule eraph,
the TO
rare
Athe echiCnes etity
OZS 3
Notebook Social ThePaga- Bunk
Bunk foçer- The Social Notebock

(Mo

Qh&k Qrabh 7S Shedutes


higher interes t
latiiy
IncreoSe
LMurue to the iÍht
Heneiorg etity becemnes
when chedulee
[So
Mo.
Bunk Pagzr - The Social Votebool

7S scheCule
supbly shs
IM Scheolule the ripht.
The int rake alls uhhl mNle
demnand increoses by eneugn
louilibium, byt in ceme S
unchonged.
ctheolule s
nt
menehagy
fisco eehuene

Rave

Incenme

Schedule beeaus
iaveshoent nere
in eleshC
he int ro te
nse the

The int rote ndued


nvesnent (oes the
Punk Poge - The Sccicl ktebeck

IS-LM medel
qen by.omultplutr
Mo

flot 1S

Todetonent s high lå Cencue


Aise in redute
inuesnent
Tncroose in Iacemm will
Teduced siginljanly
Sirte ple

ro Vetate IS

Tnome
by
tohock morKet bín
demond bolonce, hransocthonc
ViSes
<fendiag
ne (D Tin
MMo1 elesliclat high demond
is
ety FisolWhen
bfisal
to
in
Shit botzemlal
distante
tne Qmeun!
endgot the by
iOveshn©nt decline
in
oes d
Inueslment
Notebook Social The Pager- Bunk
SNctebock
Bunk Poger - The Social

4
to

when deom Qnol relaiuely


toleet-iaetOsiC 0preoker
feeoutibrae

lorer
d e c l i n e ninveshom en

Yo= Y

demnane (emplefe ly inseachue


Hamey
to chonRA
Ln schedule Wertte
Bunk Pagar - Tha Social Notdbook

Mo

Tnterest
dennand Clastcly
A Smoll
the reones
iaveahnent Small
In ths

ro

deoand
A koull in
fNeretcck
Punk oce,- The ocicl

the meny
MorkeL.
Tnceme inueslne nt
Qmeunt.
tM0

Heney demmond ombilkely


inereA ineleaic

dne Sublu
foll io
acreae
mênty demasnd
fe lere

incemmeinueshment

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