4.9: Aggregate Demand Issues
4.9.1: Leakages and Injections
Read this section, including the table listing leakages and injections. You should be able to write a formula equating the leakages to the injections and place each item into the expanded, comprehensive, and important version of the circular flow model.
4.9.2: Multipliers
Read this article about the simple multiplier. You should be able to use the formula from this article to calculate the multiplier's numeric value given MPC = 0.80. The result suggests an outcome such as income or GDP increases about five times the amount of a change in consumer expenditures, as articulated in the readings.
4.9.3: Adjustments
Watch this lecture about the business cycle.