1 / 14

Determination of output

Determination of output. Equilibrium in GOODS and SERVICES Market and MONEY Market (Demand s ide of the economy). What is in the model?. GOODS MARKET The AE d = Y equality Other variables: C d , I d , G d , NX d , T, YD, ------------------------------ IS Curve. MONEY MARKET

ewan
Télécharger la présentation

Determination of output

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Determination of output • Equilibrium in • GOODS and SERVICES Market and • MONEY Market (Demand side of the economy)

  2. What is in the model? GOODS MARKET • The AEd= Y equality • Other variables: Cd, Id, Gd, NXd, T, YD, ------------------------------ IS Curve MONEY MARKET • MD=MS equality • Other variables: Y, i -------------------------------- LM Curve

  3. IS – LM model • Money Market • Goods market i i IS LM Y Y

  4. IS-LM equilibrium • Equilibrium in both markets IS LM i Y

  5. IS-LM equilibrium • Monetary Policy IS LM i Y

  6. IS-LM equilibrium • Fiscal Policy: IS LM i Y

  7. Mathematical model of the IS-LM • See class notes and homework assignment • REVIEW ON THURSDAY LUNCH TIME

  8. Fiscal Policy • Discretionary fiscal policy • Automatic stabilizers

  9. Government Budget • Maintaining a healtyand sustainable government budget • Primary Budget • Consolidated Budget

  10. Debt to GDP

  11. Country Risk Premium

More Related