Macroeconomics in Modules 3rd

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 section 7

Income and Expenditure

1. Due to an increase in consumer wealth, there is a $40 billion autonomous
increase in consumer spending in the economies of Westlandia and Eastlandia.
Assuming that the aggregate price level is constant, the interest rate is fixed in
both countries, and there are no taxes and no foreign trade, complete the accom-
panying tables to show the various rounds of increased spending that will occur
in both economies if the marginal propensity to consume is 0.5 in Westlandia and
0.75 in Eastlandia. What do your results indicate about the relationship between
the size of the marginal propensity to consume and the multiplier?

Westlandia
Incremental Total
change change
Rounds in GDP in GDP
1 ⌬C = $40 billion ?
2 MPC × ⌬C = ? ?
3 MPC × MPC × ⌬C = ? ?
4 MPC × MPC × MPC × ⌬C = ? ?
... ... ...
Total
change (1/(1 ⴚ MPC)) ⴛ ⌬C ⴝ ?
in GDP

Eastlandia
Incremental Total
change change
Rounds in GDP in GDP
1 ⌬C = $40 billion ?
2 MPC × ⌬C = ? ?
3 MPC × MPC × ⌬C = ? ?
4 MPC × MPC × MPC × ⌬C = ? ?
... ... ...
Total
change
in GDP (1/(1 ⴚ MPC)) ⴛ ⌬C ⴝ ?

S-89

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 S-90 SECTION 7 INCOME AND EXPENDITURE

Solution
1. The accompanying tables clearly show that the larger the marginal propensity to
consume, the larger the size of the multiplier. In Westlandia, with the marginal
propensity to consume of 0.5, the multiplier equals 2. In Eastlandia, with the mar-
ginal propensity to consume of 0.75, the multiplier equals 4.

Westlandia
Incremental Total
change change
Rounds in GDP in GDP
1 ⌬C = $40 billion $40 billion
2 MPC × ⌬C = $20 billion $60 billion
3 MPC × MPC × ⌬C = $10 billion $70 billion
4 MPC × MPC × MPC × ⌬C = $5 billion $75 billion
... ... ...
Total
change (1/(1 ⴚ MPC)) ⴛ ⌬C ⴝ (1/(1 ⴚ 0.5)) ⴛ $40 billion ⴝ $80 billion
in GDP

Eastlandia
Incremental Total
change change
Rounds in GDP in GDP
1 ⌬C = $40 billion $40 billion
2 MPC × ⌬C = $30 billion $70 billion
3 MPC × MPC × ⌬C = $22.5 billion $92.5 billion
4 MPC × MPC × MPC × ⌬C = $16.88 billion $109.38 billion
... ... ...
Total
change (1/(1 ⴚ MPC)) ⴛ ⌬C ⴝ (1/(1 ⴚ 0.75)) ⴛ $40 billion ⴝ $160 billion
in GDP

2. Assuming that the aggregate price level is constant, the interest rate is fixed, and
there are no taxes and no foreign trade, what will be the change in GDP if the fol-
lowing events occur?
a. There is an autonomous increase in consumer spending of $25 billion; the
marginal propensity to consume is 2/3.
b. Firms reduce investment spending by $40 billion; the marginal propensity to
consume is 0.8.
c. The government increases its purchases of military equipment by $60 billion;
the marginal propensity to consume is 0.6.

Solution
2. a. An autonomous increase in consumer spending of $25 billion, with a marginal
propensity to consume of 2/3, will increase GDP by $75 billion:
Total change in GDP = (1/(1 − MPC)) × ⌬C
Total change in GDP = (1/(1 − 2/3)) × $25 billion
Total change in GDP = 3 × $25 billion
Total change in GDP = $75 billion

KrugMacro3eModsPS_Sec07.indd S-90 4/17/14 10:13 AM

 INCOME AND EXPENDITURE SECTION 7 S-91

b. If firms reduce investment spending by $40 billion and the marginal propensity
to consume is 0.8, GDP will fall by $200 billion:
Total change in GDP = (1/(1 − MPC)) × ⌬I
Total change in GDP = (1/(1 − 0.8)) × (−$40 billion)
Total change in GDP = 5 × (−$40 billion)
Total change in GDP = −$200 billion
c. If government purchases of goods and services rise by $60 billion and the mar-
ginal propensity to consume is 0.6, GDP will increase by $150 billion:
Total change in GDP = (1/(1 − MPC)) × ⌬G
Total change in GDP = (1/(1 − 0.6)) × $60 billion
Total change in GDP = 2.5 × $60 billion
Total change in GDP = $150 billion

3. Economists observed the only five residents of a very small economy and estimat-
ed each one’s consumer spending at various levels of current disposable income.
The accompanying table shows each resident’s consumer spending at three
income levels.

Individual consumer Individual

spending by current disposable income

$0 $20,000 $40,000
Andre 1,000 $15,000 29,000
Barbara 2,500 12,500 22,500
Casey 2,000 20,000 38,000
Declan 5,000 17,000 29,000
Elena 4,000 19,000 34,000

a. What is each resident’s consumption function? What is the marginal propensity

to consume for each resident?
b. What is the economy’s aggregate consumption function? What is the marginal
propensity to consume for the economy?

Solution
3. a. Each resident’s consumption function and marginal propensity to consume are
given in the table below. To determine autonomous consumer spending for each
resident (the vertical intercept of his or her consumption function), we can look
at each one’s consumer spending when disposable income is zero. To calculate
each resident’s marginal propensity to consume (the slope of his or her consump-
tion function), we can calculate the change in consumer spending when there is
a change in disposable income. For example, Andre’s marginal propensity to con-
sume is equal to ($29,000 − $15,000)/($40,000 − $20,000) = 0.70.

Autonomous Marginal propensity to Consumption

consumption (a) consume (MPC) function (c)
Andre $1,000 0.70 $1,000 + 0.70 × yd
Barbara 2,500 0.50 2,500 + 0.50 × yd
Casey 2,000 0.90 2,000 + 0.90 × yd
Declan 5,000 0.60 5,000 + 0.60 × yd
Elena 4,000 0.75 4,000 + 0.75 × yd

KrugMacro3eModsPS_Sec07.indd S-91 4/17/14 10:13 AM

 S-92 SECTION 7 INCOME AND EXPENDITURE

b. To find the economy’s consumption function, we calculate aggregate consumer

spending at each level of aggregate disposable income:
• When each resident earns $0 in disposable income, aggregate consumer
spending is $14,500.
• When each resident earns $20,000 in disposable income, aggregate dispos-
able income is $100,000 and aggregate consumer spending is $83,500.
• When each resident earns $40,000 in disposable income, aggregate dispos-
able income is $200,000 and aggregate consumer spending is $152,500.
Aggregate autonomous consumer spending is $14,500, and the marginal
propensity to consume is 0.69 [= ($83,500 − $14,500)/($100,000 − $0)].
The aggregate consumption function is:
C = $14,500 + 0.69 × YD

4. From 2008 to 2013, Eastlandia experienced large fluctuations in both aggregate

consumer spending and disposable income, but wealth, the interest rate, and
expected future disposable income did not change. The accompanying table shows
the level of aggregate consumer spending and disposable income in millions of dol-
lars for each of these years. Use this information to answer the following questions.

Disposable income Consumer spending

Year (millions of dollars) (millions of dollars)
2008 $100 $180
2009 350 380
2010 300 340
2011 400 420
2012 375 400
2013 500 500

a. Plot the aggregate consumption function for Eastlandia.

b. What is the marginal propensity to consume? What is the marginal propensity
to save?
c. What is the aggregate consumption function?

Solution
4. a. The accompanying diagram shows the aggregate consumption function for
Eastlandia.

Consumer spending
(millions of dollars)
$600
CF
500

400

300

200

100

0 $100 200 300 400 500 600

Disposable income
(millions of dollars)

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 INCOME AND EXPENDITURE SECTION 7 S-93

b. The marginal propensity to consume is 0.8, and the marginal propensity to save
is 0.2. By definition, the marginal propensity to consume measures the change
in consumption caused by a change in disposable income. The change in con-
sumption from 2008 to 2009 is 380 − 180, or 200. The change in disposable
income from 2008 to 2009 is 350 − 100, or 250. Therefore the MPC is 200/250,
or 0.8. Note that between any two years in the table the MPC can be calculated
in the same way and the value for the MPC is 0.8 in each case.
c. The aggregate consumption function is of the form C = A + MPC × YD. We
know MPC = 0.8, so we must now solve for A. Rearranging, we have A = C
− MPC × YD. Plugging in the data from the first row of the table, we have A
= $180 million − 0.8 × $100 million = $100 million. Hence, the aggregate con-
sumption function is C = $100 million + 0.8 × YD.

5. The Bureau of Economic Analysis reported that, in real terms, overall consumer
spending increased by $18.2 billion during January 2013.
a. If the marginal propensity to consume is 0.52, by how much will real GDP
change in response?
b. If there are no other changes to autonomous spending other than the increase
in consumer spending in part a, and unplanned inventory investment, IUnplanned,
decreased by $10 billion, what is the change in real GDP?
c. GDP at the end of December 2012 was $15,851 billion. If GDP were to increase
by the amount calculated in part b, what would be the percent increase in GDP?

Solution
5. a. Real GDP increases as a result of this change in consumer spending by
(1/(1 − MPC)) × $18.2 billion = (1/(1 − 0.52)) × $18.2 billion = $37.92 billion.
b. If, in addition to the consumer spending change in part a, unplanned inventory
investment decreases by $10 billion, the resulting change in real GDP is 27.92
billion. In this case, $10 billion worth of goods come out of inventory as an
unplanned change, and production itself increases by $27.92 billion.
c. The percent increase in GDP is ($27.92 billion/$15,851 billion) × 100 = 0.18%—
approximately the actual percent increase in real GDP over that period.

6. During the early 2000s, the Case–Shiller U.S. Home Price Index, a measure of aver-
age home prices, rose continuously until it peaked in March 2006. From March
2006 to May 2009, the index lost 32% of its value. Meanwhile, the stock mar-
ket experienced similar ups and downs. From March 2003 to October 2007, the
Standard and Poor’s 500 (S&P 500) stock index, a broad measure of stock market
prices, almost doubled, from 800.73 to a high of 1,565.15. From that time until
March 2009, the index fell by almost 60%, to a low of 676.53. How do you think the
movements in home prices both influenced the growth in real GDP during the first
half of the decade and added to the concern about maintaining consumer spending
after the collapse in the housing market that began in 2006? To what extent did the
movements in the stock market hurt or help consumer spending?

Solution
6. As home prices increased, homeowners experienced a large increase in the value
of their wealth held in real estate. At the same time, as the S&P 500 almost dou-
bled from March 2003 to October 2007, stockholders experienced a large increase
in the value of their wealth held in stocks. Both of these increased consumer
spending in the economy dramatically. However, as home prices plummeted from
their peak in early 2006, consumer spending should have fallen, other things
equal, as homeowners’ wealth decreased. And, as the S&P 500 fell almost 60%
from its peak in October 2007 to its low in March 2009, there was great concern
that the decline in the stock market was exacerbating the decrease in consumers’
wealth that had occurred because of the collapse in the housing market.

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 S-94 SECTION 7 INCOME AND EXPENDITURE

7. How will planned investment spending change as the following events occur?
a. The interest rate falls as a result of Federal Reserve policy.
b. The U.S. Environmental Protection Agency decrees that corporations must upgrade
or replace their machinery in order to reduce their emissions of sulfur dioxide.
c. Baby boomers begin to retire in large numbers and reduce their savings, result-
ing in higher interest rates.

Solution
7. a. The lower interest rate will lead to a rise in planned investment spending.
b. Firms will need to replace older machinery with newer, less polluting machin-
ery. This will increase planned investment spending.
c. As the interest rate rises, planned investment spending will fall.

8. Explain how each of the following actions will affect the level of planned invest-
ment spending and unplanned inventory investment. Assume the economy is ini-
tially in income–expenditure equilibrium.
a. The Federal Reserve raises the interest rate.
b. There is a rise in the expected growth rate of real GDP.
c. A sizable inflow of foreign funds into the country lowers the interest rate.

Solution
8. a. A rise in the interest rate will reduce planned investment spending. Planned
aggregate spending will now be less than GDP, and inventories will accumulate.
So unplanned inventory investment will be positive.
b. A rise in the expected growth rate of real GDP will lead firms to increase their
planned investment spending. Planned aggregate spending will now exceed
GDP. Sales will exceed firms’ expectations, firms will draw down inventories
unexpectedly, and unplanned inventory investment will be negative.
c. A fall in the interest rate will lead to an increase in planned investment spend-
ing. Planned aggregate spending will now exceed GDP. Sales will exceed firms’
expectations, firms will draw down inventories unexpectedly, and unplanned
inventory investment will be negative.

9. a. The accompanying table shows GDP, disposable income (YD), consumer spend-
ing (C), and planned investment spending (IPlanned) in an economy. Assume
there is no government or foreign sector in this economy. Complete the table
by calculating planned aggregate spending (AEPlanned) and unplanned inventory
investment (IUnplanned).

GDP YD C IPlanned AEPlanned IUnplanned

(billions of dollars)

$0 $0 $100 $300 ? ?
400 400 400 300 ? ?
800 800 700 300 ? ?
1,200 1,200 1,000 300 ? ?
1,600 1,600 1,300 300 ? ?
2,000 2,000 1,600 300 ? ?
2,400 2,400 1,900 300 ? ?
2,800 2,800 2,200 300 ? ?
3,200 3,200 2,500 300 ? ?

KrugMacro3eModsPS_Sec07.indd S-94 4/17/14 10:13 AM

 INCOME AND EXPENDITURE SECTION 7 S-95

b. What is the aggregate consumption function?

c. What is Y*, income–expenditure equilibrium GDP?
d. What is the value of the multiplier?
e. If planned investment spending falls to $200 billion, what will be the new Y*?
f. If autonomous consumer spending rises to $200 billion, what will be the new Y*?

Solution
9. a. GDP YD C IPlanned AEPlanned IUnplanned

(billions of dollars)
$0 $0 $100 $300 $400 −$400
400 400 400 300 700 −300
800 800 700 300 1,000 −200
1,200 1,200 1,000 300 1,300 −100
1,600 1,600 1,300 300 1,600 0
2,000 2,000 1,600 300 1,900 100
2,400 2,400 1,900 300 2,200 200
2,800 2,800 2,200 300 2,500 300
3,200 3,200 2,500 300 2,800 400

b. We can find the aggregate consumption function by calculating aggregate

autonomous consumer spending and the marginal propensity to consume.
Aggregate autonomous consumer spending equals aggregate consumer
spending when disposable income is zero; in this case, aggregate autono-
mous consumer spending is $100 billion. The marginal propensity to con-
sume is the change in aggregate consumer spending divided by the change
in disposable income; in this case, it is 0.75 [= ($400 − $100)/($400 − $0)].
The aggregate consumption function is:
C = $100 billion + 0.75 × YD
c. Y* is the level of GDP at which planned aggregate spending equals GDP. From
the accompanying table, Y* is $1,600 billion.
d. The multiplier equals 1/(1 − MPC); the value of the multiplier is 4 = 1/(1 − 0.75).
e. If planned investment spending falls to $200 billion, the new Y* will equal
$1,200 billion. If planned investment spending equals $200 billion, it has fallen
by $100 billion. Since the multiplier is 4, Y* will change by four times the
change in planned investment spending, or decrease by $400 billion.
f. If autonomous consumer spending rises to $200 billion, the new Y* will equal
$2,000 billion. If autonomous consumer spending equals $200 billion, it has
risen by $100 billion. Since the multiplier is 4, Y* will change by four times the
change in autonomous consumer spending, or increase by $400 billion.

10. In an economy with no government and no foreign sectors, autonomous consum-

er spending is $250 billion, planned investment spending is $350 billion, and the
marginal propensity to consume is 2/3.
a. Plot the aggregate consumption function and planned aggregate spending.
b. What is unplanned inventory investment when real GDP equals $600 billion?
c. What is Y*, income–expenditure equilibrium GDP?
d. What is the value of the multiplier?
e. If planned investment spending rises to $450 billion, what will be the new Y*?

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 S-96 SECTION 7 INCOME AND EXPENDITURE

Solution
10. a. If autonomous consumer spending is $250 billion and the marginal propensity
to consume is 2⁄3, the aggregate consumption function is:
C = $250 billion + 2⁄3 × YD
Planned aggregate spending equals consumer spending plus planned invest-
ment spending:
AEPlanned = C + IPlanned
AEPlanned = ($250 billion + 2⁄3 × YD) + $350 billion
AEPlanned = $600 billion + 2⁄3 × YD

AEPlanned, $3,000
consumer
spending
2,700 AEPlanned
(billions
of dollars) 45-degree line
2,400
CF
2,100
E
1,800

1,500

1,200

900

600

300
250

0 $300 600 900 1,200 1,500 1,800 2,100 2,400 2,700 3,000
Real GDP (billions of dollars)

b. When real GDP equals $600 billion, planned aggregate spending is $1,000 bil-
lion [= $600 billion + 2⁄3 × $600 billion]. Unplanned inventory investment equals
real GDP minus planned aggregate spending, or −$400 billion.
c. Y* occurs where real GDP equals planned aggregate spending. From the
accompanying diagram, we can see that this occurs at real GDP equal to
$1,800 billion. We can also find income–expenditure equilibrium GDP
algebraically. Since this economy has no taxes, disposable income YD is
equal to real GDP Y and the planned aggregate expenditure function becomes
AEplanned = $600 billion + 2⁄3 × Y. We know income–expenditure equilibrium
GDP occurs where planned aggregate expenditure is equal to real GDP so it fol-
lows that:
$600 billion + 2⁄3 × Y* = Y*
$600 billion = 1⁄3 × Y*
Y* = $1,800 billion.
d. The value of the multiplier is 3 [= 1/(1 − 2⁄3)].
e. If planned investment spending rises to $450 billion, that will be an increase
of $100 billion in planned investment spending. Given a multiplier of 3, Y* will
rise by $300 billion to $2,100 billion.

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 INCOME AND EXPENDITURE SECTION 7 S-97

11. An economy has a marginal propensity to consume of 0.5, and Y*, income–
expenditure equilibrium GDP, equals $500 billion. Given an autonomous increase
in planned investment of $10 billion, show the rounds of increased spending that
take place by completing the accompanying table. The first and second rows are
filled in for you. In the first row, the increase of planned investment spending of
$10 billion raises real GDP and YD by $10 billion, leading to an increase in con-
sumer spending of $5 billion (MPC × change in disposable income) in row 2, rais-
ing real GDP and YD by a further $5 billion.

Change in
IPlanned Change in Change in
or C real GDP YD

Rounds (billions of dollars)

1 ΔIPlanned = $10.00 $10.00 $10.00
2 ΔC = $ 5.00 $ 5.00 $ 5.00
3 ΔC = ? ? ?
4 ΔC = ? ? ?
5 ΔC = ? ? ?
6 ΔC = ? ? ?
7 ΔC = ? ? ?
8 ΔC = ? ? ?
9 ΔC = ? ? ?
10 ΔC = ? ? ?

a. What is the total change in real GDP after the 10 rounds? What is the value of the
multiplier? What would you expect the total change in Y* to be based on the mul-
tiplier formula? How do your answers to the first and third questions compare?
b. Redo the table starting from round 2, assuming the marginal propensity to con-
sume is 0.75. What is the total change in real GDP after 10 rounds? What is the
value of the multiplier? As the marginal propensity to consume increases, what
happens to the value of the multiplier?

Solution
11. a. The total change in GDP after the 10 rounds is $19.98 billion, obtained by
adding up the change in GDP for each of the first 10 rounds. The multiplier is
2 [= (1/(1 − 0.5))]. We would expect the total change in Y* to be twice the change
in planned investment spending. Since the autonomous change in planned
investment spending was $10 billion, we would expect a change in Y* of $20 bil-
lion. This is very similar to the change in GDP after 10 rounds ($19.98 billion).

Change in IPlanned or C Change in real GDP Change in YD

Rounds (billions of dollars)
1 ⌬IPlanned = $10.00 $10.00 $10.00
2 ⌬C = 5.00 5.00 5.00
3 ⌬C = 2.50 2.50 2.50
4 ⌬C = 1.25 1.25 1.25
5 ⌬C = 0.63 0.63 0.63
6 ⌬C = 0.31 0.31 0.31
7 ⌬C = 0.16 0.16 0.16
8 ⌬C = 0.08 0.08 0.08
9 ⌬C = 0.04 0.04 0.04
10 ⌬C = 0.02 0.02 0.02

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 S-98 SECTION 7 INCOME AND EXPENDITURE

b. The total change in GDP after 10 rounds is $37.74 billion, obtained by adding
up the change in GDP for each of the first 10 rounds. The value of the multiplier
is 4. As the marginal propensity to consume increases, so does the value of the
multiplier.

Change in IPlanned or C Change in real GDP Change in YD

Rounds (billions of dollars)
1 ⌬IPlanned = $10.00 $10.00 $10.00
2 ⌬C = 7.50 7.50 7.50
3 ⌬C = 5.63 5.63 5.63
4 ⌬C = 4.22 4.22 4.22
5 ⌬C = 3.16 3.16 3.16
6 ⌬C = 2.37 2.37 2.37
7 ⌬C = 1.78 1.78 1.78
8 ⌬C = 1.33 1.33 1.33
9 ⌬C = 1.00 1.00 1.00
10 ⌬C = 0.75 0.75 0.75

12. Although the United States is one of the richest nations in the world, it is also
the world’s largest debtor nation. We often hear that the problem is the nation’s
low savings rate. Suppose policy makers attempt to rectify this by encouraging
greater savings in the economy. What effect will their successful attempts have
on real GDP?

Solution
12. If policy makers successfully encouraged greater savings, there would be a
decrease in either consumer spending or planned investment spending. A drop in
C or in IPlanned would decrease the income–expenditure equilibrium GDP by several
times the change in spending. This is the paradox of thrift. If households and pro-
ducers decrease spending to reduce the nation’s debt, these actions will depress
the economy, leaving households and producers worse off than they were with the
nation’s large debt.

13. The U.S. economy slowed significantly in early 2008, and policy makers were
extremely concerned about growth. To boost the economy, Congress passed sev-
eral relief packages that combined would deliver about $700 billion in government
spending. Assume, for the sake of argument, that this spending was in the form of
payments made directly to consumers. The objective was to boost the economy by
increasing the disposable income of American consumers.
a. Calculate the initial change in aggregate consumer spending as a consequence
of this policy measure if the marginal propensity to consume (MPC) in the
United States is 0.5. Then calculate the resulting change in real GDP arising
from the $700 billion in payments.
b. Illustrate the effect on real GDP with the use of a graph depicting the income–
expenditure equilibrium. Label the vertical axis “Planned aggregate spending,
AEPlanned” and the horizontal axis “Real GDP.” Draw two planned aggregate
expenditure curves (AEPlanned1 and AEPlanned2) and a 45-degree line to show the
effect of the autonomous policy change on the equilibrium.

KrugMacro3eModsPS_Sec07.indd S-98 4/17/14 10:13 AM

 INCOME AND EXPENDITURE SECTION 7 S-99

Solution
13. a. Government spending increases the disposable income of American consumers.
The MPC can be used to calculate the effect of government spending on con-
sumer spending: ΔC = MPC × ΔYD = 0.5 × $700 billion = $350 billion. We can
then use the change in consumer spending along with the multiplier to calcu-
late the resulting change in real GDP. ΔY = (1/(1 − MPC)) × ΔC = (1/(1 − 0.5)) ×
$350 billion = $700 billion.
b. As shown in the accompanying diagram, the payments result in an autonomous
increase in planned aggregate spending. This change results in an increase in
real GDP.

Planned AEPlanned2
aggregate
spending, AEPlanned1
AEPlanned
E2
Autonomous
change
E1

Y1 Y2 Real GDP

KrugMacro3eModsPS_Sec07.indd S-99 4/17/14 10:13 AM

KrugMacro3eModsPS_Sec07.indd S-100 4/17/14 10:13 AM
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 A BAKED IRISH STEW.

Fill a brown upright Nottingham jar with alternate layers of mutton

(or beef), sliced potatoes, and mild onions; and put in water and
seasoning as above; cover the top closely with whole potatoes
(pared), and send the stew to a moderate oven. The potatoes on the
top should be well cooked and browned before the stew is served.
We have not considered it necessary to try this receipt, which was
given to us by some friends who keep an excellent table, and who
recommended it much. It is, of course, suited only to a quite plain
family dinner. The onions can be omitted when their flavour is not
liked.
 CUTLETS OF COLD MUTTON.

Trim into well-shaped cutlets, which should not be very thin, the
remains of a roast loin or neck of mutton, or of a quite underdressed
stewed or boiled joint; dip them into egg and well-seasoned bread-
crumbs, and broil or fry them over a quick fire that they may be
browned and heated through without being too much done. This is a
very good mode of serving a half roasted loin or neck. When the
cutlets are broiled they should be dipped into, or sprinkled thickly
with butter just dissolved, or they will be exceedingly dry; a few
additional crumbs should be made to adhere to them after they are
moistened with this.
 MUTTON KIDNEYS À LA FRANÇAISE. (ENTRÉE.)

Skin six or eight fine fresh mutton kidneys, and without opening
them, remove the fat; slice them rather thin, strew over them a large
dessertspoonful of minced herbs, of which two-thirds should be
parsley and the remainder thyme, with a tolerable seasoning of
pepper or cayenne, and some fine salt. Melt two ounces of butter in
a frying-pan, put in the kidneys and brown them quickly on both
sides; when nearly done, stir amongst them a dessertspoonful of
flour and shake them well in the pan; pour in the third of a pint of
gravy (or of hot water in default of this), the juice of half a lemon, and
as much of Harvey’s sauce, or of mushroom catsup, as will flavour
the whole pleasantly; bring these to the point of boiling, and pour
them into a dish garnished with fried sippets, or lift out the kidneys
first, give the sauce a boil and pour it on them. In France, a couple of
glasses of champagne, or, for variety, of claret, are frequently added
to this dish: one of port wine can be substituted for either of these. A
dessertspoonful of minced eschalots may be strewed over the
kidneys with the herbs; or two dozens of very small ones previously
stewed until tender in fresh butter over a gentle fire, may be added
after they are dished. This is a very excellent and approved receipt.
Fried 6 minutes.
 BROILED MUTTON KIDNEYS.

Split them open lengthwise without dividing them, strip off the skin
and fat, run a fine skewer through the points and across the back of
the kidneys to keep them flat while broiling, season them with pepper
or cayenne, lay them over a clear brisk fire, with the cut sides
towards it, turn them in from four to five minutes, and in as many
more dish, and serve them quickly, with or without a cold Maître
d’Hôtel sauce under them. French cooks season them with pepper
and fine salt, and brush a very small quantity of oil or clarified butter
over them before they are broiled: we think this an improvement.
8 to 10 minutes.
OXFORD RECEIPT FOR MUTTON KIDNEYS. (BREAKFAST DISH,
OR ENTRÉE.)

Fry gently in a little good butter, a dozen croûtons (slices of bread,

of uniform shape and size, trimmed free from crust), cut half an inch
thick, about two inches and a half wide, and from three to four in
length: lift them out and keep them hot. Split quite asunder six fine
fresh kidneys, after having freed them from the skin and fat; season
them with fine salt and cayenne, arrange them evenly in a clean
frying-pan, and pour some clarified butter over them. Fry them over a
somewhat brisk fire, dish each half upon a croûton, make a sauce in
the pan as for veal cutlets, but use gravy for it instead of water,
should it be at hand; add a little wine or catsup, pour it round the
croûtons, and serve the kidneys instantly.
10 minutes.
 TO ROAST A FORE QUARTER OF LAMB.

This should be laid to a clear brisk fire, and carefully and plentifully
basted from the time of its becoming warm until it is ready for table;
but though it requires quick roasting, it must never be placed
sufficiently near the fire to endanger the fat, which is very liable to
catch or burn. When the joint is served, the shoulder should be
separated from the ribs with a sharp knife; and a small slice of fresh
butter, a little cayenne, and a squeeze of lemon juice should be laid
between them; if the cook be an expert carver, this had better be
done before the lamb is sent to table. The cold Maître d’Hôtel sauce
of Chapter VI. may be substituted for the usual ingredients, the
parsley being omitted or not, according to the taste. Serve good mint
sauce, and a fresh salad with this roast.
A leg, shoulder, or loin of lamb should be cooked by the same
directions as the quarter, a difference only being made in the time
allowed for each.
Fore quarter of lamb, 1-3/4 to 2 hours. Leg, 1-1/2 hour (less if very
small); shoulder, 1 to 1-1/4 hour.
Obs.—The time will vary a little, of course, from the difference in
the weather, and in the strength of the fire. Lamb should always be
well roasted.
 SADDLE OF LAMB.

This is an exceedingly nice joint for a small party. It should be

roasted at a brisk fire, and kept constantly basted with its own
dripping: it will require from an hour and three quarters to two hours
roasting. Send it to table with mint sauce, brown cucumber sauce,
and a salad.
1-3/4 to 2 hours.
Obs.—The following will be found an excellent receipt for mint
sauce:—With three heaped tablespoonsful of finely-chopped young
mint, mix two of pounded and sifted sugar, and six of the best
vinegar: stir it until the sugar is dissolved.
 ROAST LOIN OF LAMB.

Place it at a moderate distance from a clear fire, baste it

frequently, froth it when nearly done, and serve it with the same
sauces as the preceding joints. A loin of lamb may be boiled and
sent to table with white cucumber, mushroom, common white sauce,
or parsley and butter.
1 to 1-1/4 hour.
 STEWED LEG OF LAMB WITH WHITE SAUCE. (ENTRÉE.)[81]
81. This may be served as a remove in a small unceremonious dinner.

Choose a small plump leg of lamb, not much exceeding five

pounds in weight; put it into a vessel nearly of its size, with a few
trimmings or a bone or two of undressed veal if at hand; cover it with
warm water, bring it slowly to a boil, clear off the scum with great
care when it is first thrown to the surface, and when it has all been
skimmed off, add a faggot of thyme and parsley, and two carrots of
moderate size. Let the lamb simmer only, but without ceasing, for an
hour and a quarter; serve it covered with béchamel, or rich English
white sauce, and send a boiled tongue to table with it, and some of
the sauce in a tureen.
1-1/4 hour.
 LOIN OF LAMB STEWED IN BUTTER. (ENTRÉE.)

Wash the joint, and wipe it very dry; skewer down the flap, and lay
it into a close-shutting and thick stewpan or saucepan, in which three
ounces of good butter have been just dissolved, but not allowed to
boil; let it simmer slowly over a very gentle fire for two hours and a
quarter, and turn it when it is rather more than half done. Lift it out,
skim and pour the gravy over it; send asparagus, cucumber, or
soubise sauce to table with it; or brown gravy, mint sauce, and a
salad.
2-1/4 hours.
 LAMB OR MUTTON CUTLETS, WITH SOUBISE SAUCE.
(ENTRÉE.)

The best end of two necks of either will be required for a

handsome dish. Cut them thin with one bone to each; trim off the fat
and all the skin, scrape the bones very clean that they may look
white, and season the cutlets with salt and white pepper; brush them
with egg, dip them into very fine bread-crumbs, then into clarified
butter, and again into the bread-crumbs, which should be flattened
evenly upon them, and broil them over a very clear and brisk fire, or
fry them in a little good butter of a fine clear brown; press them in
two sheets of white blotting paper to extract the grease, and dish
them in a circle, and pour into the centre a soubise sauce, or a purée
of cucumbers. Brown cucumber sauce or a rich gravy, may be
substituted for either of these in serving a quite simple dinner.
Cutlets of the loin may be dressed in the same way after being
dipped into crumbs of bread mixed with a full seasoning of minced
herbs, and with a small quantity of eschalot when its flavour is liked.
The small flat bone at the end of the cutlets should be taken off, to
give them a good appearance.
 LAMB CUTLETS IN THEIR OWN GRAVY.

Follow exactly the receipt for mutton cutlets dressed in the same
way, but allow for those of lamb fifteen or twenty minutes less of
time, and an additional spoonful of liquid.
 CUTLETS OF COLD LAMB.

See the receipt for Cutlets of Cold Mutton, page 243.

 CHAPTER XIII.

Pork.

No.
1. The Spare Rib.
2. Hand.
3. Belly, or Spring.
4. Fore Loin.
5. Hind Loin.
6. Leg.

In season from Michaelmas to March: should be avoided in very warm weather.

 TO CHOOSE PORK.

This meat is so proverbially, and we believe even dangerously

unwholesome when ill fed, or in any degree diseased, that its quality
should be closely examined before it is purchased. When not home-
reared, it should be bought if possible of some respectable farmer or
miller, unless the butcher who supplies it can be perfectly relied on.
Both the fat and lean should be very white, and the latter finely
grained; the rind should be thin, smooth, and cool to the touch; if it
be clammy, the pork is stale, and should be at once rejected; it ought
also to be scrupulously avoided when the fat, instead of being quite
clear of all blemish, is full of small kernels which are indicative of
disease. The manner of cutting up the pork varies in different
counties, and also according to the purposes for which it is intended.
The legs are either made into hams, or slightly salted for a few days
and boiled; they are also sometimes roasted when the pork is not
large nor coarse, with a savoury forcemeat inserted between the skin
and flesh of the knuckle. The part of the shoulder provincially called
the hand, is also occasionally pickled in the same way as hams and
bacon, or it is salted and boiled, but it is too sinewy for roasting. After
these and the head have been taken off, the remainder, without
further division than being split down the back, may be converted
into whole sides, or flitches as they are usually called, of bacon; but
when the meat is large and required in part for various other
purposes, a chine may be taken out, and the fat pared off the bones
of the ribs and loins for bacon; the thin part of the body converted
into pickled pork, and the ribs and other bones roasted, or made into
pies or sausages. The feet, which are generally salted down for
immediate use, are excellent if laid for two or three weeks into the
same pickle as the hams, then well covered with cold water, and
slowly boiled until tender.
The loins of young and delicate pork are roasted with the skin on;
and this is scored in regular stripes of about a quarter of an inch
wide with the point of a sharp knife, before the joints are laid to the
fire. The skin of the leg also is just cut through in the same manner.
This is done to prevent its blistering, and to render it more easy to
carve, as the skin (or crackling) becomes so crisp and hard in the
cooking that it is otherwise sometimes difficult to divide it.
To be at any time fit for table, pork must be perfectly sweet, and
thoroughly cooked; great attention also should be given to it when it
is in pickle, for if any part of it be long exposed to the air, without
being turned into, or well and frequently basted with the brine, it will
often become tainted during the process of curing it.
 TO MELT LARD.

Strip the skin from the inside fat of a freshly killed and well-fed pig;
slice it small and thin; put it into a new or well-scalded jar, set it into a
pan of boiling water, and let it simmer over a clear fire. As it
dissolves, strain it into small stone jars or deep earthen pans, and
when perfectly cold, tie over it the skin that was cleared from the
lard, or bladders which have been thoroughly washed and wiped
very dry. Lard thus prepared is extremely pure in flavour, and keeps
perfectly well if stored in a cool place; it may be used with advantage
in making common pastry, as well as for frying fish, and for various
other purposes. It is better to keep the last drainings of the fat apart
from that which is first poured off, as it will not be quite so fine in
quality.
 TO PRESERVE UNMELTED LARD FOR MANY MONTHS.

For the particular uses to which the leaf-fat, or fleed, can be

advantageously applied, see fleed-crust, Chapter XVIII. It may be
kept well during the summer months by rubbing fine salt rather
plentifully upon it when it is first taken from the pig, and letting it lie
for a couple of days; it should then be well drained, and covered with
a strong brine; this in warmer weather should be changed
occasionally. When wanted for use, lay it into cold water for two or
three hours, then wipe it dry, and it will have quite the effect of the
fresh fleed when made into paste.
Inner fat of pig, 6 lbs.; fine salt, 1/2 to 3/4 lb.: 2 days. Brine: to
each quart of water, 6 oz. salt.
 TO ROAST A SUCKING PIG.

After the pig has been scalded and

prepared for the spit, wipe it as dry as
possible, and put into the body about
half a pint of fine bread-crumbs, mixed
with three heaped teaspoonsful of
sage, minced very small, three
ounces of good butter, a large
saltspoonful of salt, and two-thirds as
much of pepper or some cayenne. Sew it up with soft, but strong
cotton; truss it as a hare, with the fore legs skewered back, and the
hind ones forward; lay it to a strong clear fire, but keep it at a
moderate distance, as it would quickly blister or scorch if placed too
near. So soon as it has become warm, rub it with a bit of butter tied
in a fold of muslin or of thin cloth, and repeat this process constantly
while it is roasting. When the gravy begins to drop from it, put basins
or small deep tureens under, to catch it in.[82] As soon as the pig is
of a fine light amber brown and the steam draws strongly towards
the fire, wipe it quite dry with a clean cloth, and rub a bit of cold
butter over it. When it is half done, a pig iron, or in lieu of this, a large
flat iron should be hung in the centre of the grate, or the middle of
the pig will be done long before the ends. When it is ready for table
lay it into a very hot dish, and before the spit is withdrawn, take off
and open the head and split the body in two; chop together quickly
the stuffing and the brains, put them into half a pint of good veal
gravy ready thickened, add a glass of Madeira or of sherry, and the
gravy which has dropped from the pig; pour a small portion of this
under the roast and serve the remainder as hot as possible in a
tureen: a little pounded mace and cayenne with a squeeze of lemon-
juice, may be added, should the flavour require heightening. Fine
bread sauce, and plain gravy should likewise be served with it. Some
persons still prefer the old-fashioned currant sauce to any other: and
many have the brains and stuffing stirred into rich melted butter,
instead of gravy; but the receipt which we have given has usually