These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute. !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!Lecture!5!Outline(of(Last(Lecture((I. Expenditure!and!Income!a. Expenditure!Approach!b. Income!Approach!II. Investment!III. Circular!Flow!Outline(of(Current(Lecture((I. Personal!Income!II. Personal!Income!Taxes!a. Disposable!Income!Current(Lecture!1) Personal!Income:!The!total!income!of!households.(2) Personal!Income!Taxes:!Tax!paid!on!one’s!personal!income.(a. Disposable!Income:!Personal!income!minus!personal!income!taxes;!the!amount!that!households!have!to!spend!or!save.!(i. Disposable!Income!=!YD(ii. YD!=!Consume!+!Save!or!YD!=!C!+!S!!!!!!!!!PLEASE!NOTE:!With!these!lecture!notes!being!so!short,!it!is!important!to!realize!that!the!Professor!relies!heavily!on!the!assumption!that!everyone!is!reading!the!textbook.!These!notes!are!to!be!used!as!a!reference!to!the!book.!!!!((((((Econ(104(((((11th(Edition(!
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