Econ 304 Sonoma State University Dr. Robert Eyler Fall 2007 Some Useful Equations for the Short-Run Macroeconomy Chapter 5 is a mix of simple algebra and many macroeconomic definitions. To help your studying for the test and to finish the homework, the following list of equations should help. I am trying to stick to the book’s symbology where I can. Definitions: (1) GDP = Y = C d + I d + G + NX, where NX = EX - IM. The superscript “d” means “desired” but can also mean “domestic”. (2) S d = Y – C d – T (assume a balanced budget unless otherwise stated in the homework, such that S
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