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

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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 fk= 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) | Y/G= 1/(1-MPC) government purchases multiplier | Y/T= -MPC/(1-MPC) tax multiplier T X MPC/(1-MPC) | E=C(Y-T)+I+G...
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This note was uploaded on 04/11/2009 for the course ECON 101 taught by Professor Miyanishi during the Spring '08 term at UC Davis.

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