About the lecture

In this module, we think about marginal propensities before turning to consumption and investment, and exogenous shocks. We focus in particular on: (i) the definition of marginal propensity to consume and save; (ii) how firms decide on making an investment; and (iii) give a few examples of negative exogenous shocks to the components of GDP and how we can use the circular flow of income in order to consider the final impact on national income.

About the lecturer

Dr Paul Segal is a Reader in Economics of Development at King's College London. He specialises in researching global poverty and inequality, the economics of natural resources, and economic history. He has published widely within these areas, including Who Are the Global Top 1%? and The Economy: Economics for a Changing World. He has also written policy articles for FT.com and has collaborated with Oxfam Mexico to undertake empirical fieldwork in Mexico City, analysing multidimensional inequalities.