• The factors that influence consumption.
• The relationship between consumption, disposable income and savings.
• Whereas consumption depends upon GDP, it can be demonstrated that GDP depends upon consumption.
• The effect of changes in consumption expenditures on GDP components, i.e., investment, government expenditures and net exports.
• The effect of change in consumption expenditures on aggregate demand.
• The effect of changes in tax policy on autonomous investment and economic activity.
• The effect of government expenditures on aggregate demand.
• The effect of changes in fiscal policy on aggregate demand-investment and net exports.
• The way in which fiscal policy can influence aggregate supply in the short-run.
• The effect of taxes on the multiplier.