<p> Objectives of Chapter 3 The Simple Keynesian Theory of Income Determination</p><p> To determine the roles of exogenous variables affecting desired spending that tend to drive cyclical changes in income and endogenous variables that are further affect desired spending.</p><p> To understand the roles of consumption, savings, and autonomous forces affecting investment, government, and net exports on equilibrium income.</p><p> To determine what happens to the economy when it is not in equilibrium.</p><p> To understand the equilibrium condition when autonomous planned spending (injections) equal induced savings (leakages).</p><p> To understand the role of the income multiplier and what determines its value.</p><p> To analyze the impact of government spending and taxes (fiscal policy) on aggregate income.</p><p> To generalize the equilibrium model to include income taxes and induced net exports.</p><p> To be able to apply the Keynesian theory of income determination to current fiscal policy initiatives and other real world applications.</p>