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Flashcards in M acro Deck (38)
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1
Q

Y

A

GDP

2
Q

C

A

aggregate consumption

3
Q

I

A

investment

4
Q

G

A

Government spending

5
Q

NX

A

net exports

6
Q

Yd (d come apice) e formula

A

Disposable income

Y + Tr - Ta

7
Q

Tr

A

(gov) transfer to the private

8
Q

Ta

A

Total taxation

9
Q

Sp

A

Private savings

10
Q

BD

A

(Gov) budget deficit

11
Q

Sg

è inverso a?

A

government savings
inverso a BD
Sg= - BD

12
Q

AD

A

aggregate demand

13
Q

P

A

price level

14
Q

K

A

physical capital stock

15
Q

AS

A

aggregate supply

16
Q

M

A

offerta di moneta

17
Q

L

A

domanda di liquidità

18
Q

wage equation

A

W = PAF u(-) z(+)

19
Q

real wage equation

A

W/P = AF u(-) z(+)

20
Q

in the Short-run:
– prices are
– output is determined by
– unemployment is ____ related to ___

A

Short-run:
– prices fixed
– output determined by aggregate demand
– unemployment negatively related to output

21
Q

Consumption function

A

C = C con la barretta sopra + c YD(apice)
Ccon la barretta sopra > 0
0 < c piccola < 1

22
Q

disposable income

A

YD(apice) = Y +Ta -Tr

23
Q

c piccola

A

marginal propensity to consume

24
Q

C grande con la barretta sopra

A

autonomous consumption

25
Q

Investment function

A

I = Icon la barretta sopra - br
I con la barretta sopra > 0
b maggiore o = di 0
b < infinito

26
Q

I

A

Investment in physical (fixed) capital

27
Q

I grande con la barretta sopra

A

Autonomous investment

28
Q

b

A

Sensitivity of investment with respect to r

29
Q

r

given by…?

A

Real interest rate, given by r = i - p greco e(apice)

30
Q

p greco e(apice)

A

Expected inflation rate

31
Q

i

A

Nominal interest rate

i = r +p greco e apice

32
Q

Fiscal policy

A

G =G con la barretta; G con la barretta > 0
Tr = Tcon la barretta r ; Tcon la barretta r> 0
Ta = Tcon la barretta a , Tcon la barretta a > 0;
or Tcon la barretta a =tauY, tau > 0

33
Q

Aggregate demand definition and equilibrium condition in a CLOSED ECONOMY

A

AD =(con tre linee) C + I + G

Y= AD

34
Q

The IS curve shows _____

A

The IS curve shows all the combinations of r and Y

that result in goods market equilibrium

35
Q

The equation for the IS curve is

A

Y = A con la barretta + c piccola Y - br

36
Q

A con la barretta

A

autonomous aggregate demand
A con la barretta = C con la barretta + c (Tcon la barretta r - T con la barretta a ) + I con la barretta + G con la barretta.

37
Q

MONEY DEMAND

A

People demand money for making transactions, covering
unexpected needs and choosing the desired portfolio
composition

38
Q

real MONEY DEMAND is given by

A

M d apice / P = kY - hi

k e h sono behavioral numbers