1 / 5

LECTURE 4 TECHNOLOGICAL CHANGE

This lecture from Fall 2000 explores the impact of technological change on macroeconomic models. Professor Charles R. Plott from Caltech provides insights into the interactions between spending, income, investment, and money demand. The lecture includes key equations that highlight the relationships between consumption, government spending, and overall economic equilibrium. It emphasizes the role of technological advancements in shifting economic dynamics, illustrating their importance in understanding changes in consumption patterns and investment behaviors.

gzifa
Télécharger la présentation

LECTURE 4 TECHNOLOGICAL CHANGE

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. LECTURE 4 TECHNOLOGICAL CHANGE

  2. THE MACRO ECONOMIC MODEL Introduction to Economics Class Notes Fall 2000 Charles R. Plott California Institute of Technology

  3. I a Spending I1 I1+a1 Y1 Y2 Y i i i i a Y M/P I I1 a1 MDT MDT Y M/P P P P P* Y M*/P* M/P W/P Y UNKNOWNS .Y income .C consumption .I investment .i interest rate .P price level .L employment .MD money demand .MDT transaction demand for money .MDS speculative demand for money .w nominal wages level GIVENS G Government spending X net exports M nominal money supply b marginal propensity to consume EQUATIONS .Y=C+I+G+X .C=a(i)+bY .I=I(i) .M/P = MD .MD=MDT+MDS .MDT = MDT(Y) .MDS = MDS(i) .DL(w/P)-SL(w/P)=0 .L=SL(w/P) .Y=F(L,..)

  4. EXERCISE #4 THERE IS A SHIFT IN TECHNOLOGY. TECHNOLOGICAL ADVANCE HAS TAKEN PLACE.

  5. I a Spending I1 I1+a1 Y1 Y2 Y i i i i a Y M/P I I1 a1 MDT MDT Y M/P P P P P* Y M*/P* M/P W/P Y

More Related