Before Class on Tuesday, 10/05
Read: Moore (2020)
Watch (6:39): Khan (2014)
In Class
Slides: Consumption and Savings
Before Class on Friday, 10/08
Have tried or completed all of Weekly Review 5
Material Links
Khan, Sal. (2014). “Consumption Function Basics.” Khan Academy. https://www.khanacademy.org/economics-finance-domain/macroeconomics/income-and-expenditure-topic/macroeconomics-the-consumption-function/v/consumption-function-basics
Moore, Kyle. (2020). “The Economics of Race.” Phenomenal World. 27 February https://phenomenalworld.org/analysis/stratification-economics
1.) The author talked about how when income is low for every incremetal dollar of income most people are more than likely to spend a lot, but as their income increases they will be spending less than their disposible income. Do you agree or disagree?
2.) I learned that to get Consumption (C) = 500 + 0.6(Disposable Income), as 500 which is just the unit + the (disposable income) which you get by Subtracting Taxes from the Income.
3.) My favorite part is when he drew the line graph, which made it simple to understand. My least favorite part even thou I ended up understanding after rewatching it a few times, was the part where he put on the table that C= 500 + 0.6 * 1000=1100.