EC108 11 PDF
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This document appears to be lecture notes or study material on macroeconomic concepts. Equations related to income, wealth, inflation, and employment are shown. It discusses Keynesian consumption function, IS-LM model, and their relationships. No distinct exam board, year, or school is identifiable.
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T = exogenous investment...
T = exogenous investment T is inflation winitial wealth Equation sheet Y & ↑ annual income years to retirement lifetime (work start) I LCH L= N + U (labour force = employed + unemployed employed u= E Lunemployment rate = labour force ( nominal GDP Pt = CGDP deflator = real opp ( GDP = C+1 + 6 + NX = (+ + 6+ X - Im (12) CotCYp (Y 1) Keynesian consumption function C= co + < = - closed (Y-T) + T + 6 Y cot (Y-T) + i + (in a economy) 2 = Cotc , & at equilibrium = 3Y = [co+i + xT] - private savings S= YD-C = Y-T-C IS equation 1 = S + (T - 6) demand for money Md $YL(i) = LM relation M= $YL(i) demand for currency cut = lend between 2 periods around (T., Y2) change in pivots BC · r income effect if the makes him better off , C& C · saver, rise consumer is in increasing : r a substitution effect : increases of C↓ C4 · rise in r opportunity cost current consumption - · if a consumer faces borrowing constraints , they may not be able to increase consumption in the period and consumption will behave like Keynesian [2 non-binding M · constraint is if
