Key Concepts: Equilibrium Income and Expenditures, Changes in Equilibrium Income and Expenditures, Aggregate Expenditures and Aggregate Demand

Bureau of Economic Analysis—Personal Income Deposition

Review the recent "personal income and outlays" information prepared by the Bureau of Economic Analysis.  Study the "disposition" of personal income data detailed in Table 2.    

• Assess the changes in the overall "personal savings rate as a percentage of disposable personal income" since 1999.  What has been the most recent emerging trend? 
• Review the annual GDP growth data supplied by the Bureau of Economic Analysis under Table 1 since 1999.  What potential "causal" relationship may exist between the "personal savings rate" and GDP?
• Identify one potential factor that can immediately change or shift the "income and expenditure" equilibrium in the economy (Hint. income vs. disposable income).