AD AS Formulas Flashcards

1
Q

APC

A

Consumption/Disposable Income

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2
Q

APS

A

Saving/Disposable Income

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3
Q

MPC

A

change in consumption/change in disposable income

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4
Q

MPS

A

change in saving/change in disposable income

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5
Q

MPC + MPS=

A

1

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6
Q

C/DI (C/Y)

A

APC

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7
Q

S/DI (S/Y)

A

APS

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8
Q

🔼C/🔼DI (🔼C/🔼Yd)

A

MPC

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9
Q

🔼S/🔼DI (🔼S/🔼Y)

A

MPS

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10
Q

Spending Multiplier

A

1/MPS

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11
Q

1/MPS

A

Spending Multiplier

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12
Q

🔼Spending • Multiplier =

A

RGDP

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