Outcome: The Expenditure Output Model

What you’ll learn to do: use the Expenditure Output model to explain periods of recession and expansion

You’ve already learned the basic tenets of Keynesian Economics and understand the aggregate demand/aggregate supply model. In this outcome, you’ll learn about an alternative approach to calculating national income through the Keynesian perspective, known as the Expenditure-Output Model (or Aggregate Expenditure Model).


The learning activities for this section include:

  • Reading:┬áThe Expenditure-Output Model
  • Reading: Using an Algebraic Approach to the Expenditure-Output Model
  • Reading: Equilibrium and The Expenditure-Output Model
  • Reading: The Multiplier Effect
  • Self Check: The Expenditure Output Model

Take time to review and reflect on each of these activities in order to improve your performance on the assessment for this section.