the two-sector national income model; and the income-expenditure diagram with a 45 degree line.
EconExperiments
- Consumption & Savings
| Discussion forum--- Please leave your valuable comments or questions here! | |||
| Concepts & Keywords Illustrated: | |||
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Consumption function | ||
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Savings function | ||
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Aggregate expenditure curve | ||
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Average propensity to consume | ||
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Average propensity to save | ||
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Marginal propensity to consume | ||
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Marginal propensity to save | ||
| Brief description: | |||
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In
this experiment, teacher has to collect some data from students in order
to get the class's total expenditure on both saving and consumption to explain
the concepts of aggregate expenditure; the two-sector national income model; and the income-expenditure diagram with a 45 degree line. |
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Students will also calculate their own APC, APS, MPC & MPS from the data. | ||
Teaching Materials:
| Teaching Materials |
Format
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3) Diagram & Table (English and Chinese) |
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