National Income in the Long Run

 

  1. Production from Production Function
    1. Constant Returns to Scale
    2. Diminishing Returns
  2. Distribution from Marginal Products
    1. Microeconomic Factor Markets
    2. Euler’s Theorem
    3. Implications for Distribution
  3. Components of Expenditure
    1. Consumption Function
    2. Investment
  4. Equilibrium
    1. Goods Market
    2. Loanable Funds Market