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CPI 100X - pi(us | Sf(k = dk | sy=dk for steady state |...

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CPI 100X(cost of basket in that month/cost of basket in base period) | Hire up to w= r P MPl= w P MPk=r | Max prof= P F(KL)-wL-rK or profit = PY – MPL x L- MPK x K | C+I+G+Nx=Y=(F(K L) | C= a+b(Y-T) | (Y-C-G)= I (r) or the most that can be used for investment MV= PT | %∆M+%∆V=%∆P+%∆Y | inflation pi= %∆M - %∆Y =gdp deflator new- gdp deflator old/ gdp deflator old GDP deflator = 100 X (nominal GDP/real GDP)| MPl = F(KL+1) – F(KL) | MPl = d F(DL)/ dL | %∆nominal exchange rate= %pi (foreign)
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Unformatted text preview: - % pi (us) | Sf(k) = dk | sy=dk for steady state | golden rule f’(k)-d=0 or f’k= d | Steady state= sf(k) = (d+n+g)k | Golden rule= f’(k)= d+n+g | MV = PY | agg output = natural rate of output+ a positive parameter(thea ctual price leve- the expected price level) | ΔY/ΔG= 1/(1-MPC) government purchases multiplier | ΔY/ΔT= -MPC/(1-MPC) tax multiplier ΔT X MPC/(1-MPC) | E=C(Y-T)+I+G...
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