The episode begins by introducing ex ante and ex post values, which refer to planned versus actual values of economic variables like consumption and investment. It then focuses on aggregate demand, the total demand for final goods and services in the economy, which is made up of consumption, investment, and government spending. The episode demonstrates how changes in autonomous expenditure, such as investment, impact equilibrium income and output through the multiplier effect. Finally, this episode discusses the paradox of thrift, which shows that increased saving can lead to a decrease in overall income and saving.

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