M acro

Question 1

Y

Answer 1

GDP

Question 2

C

Answer 2

aggregate consumption

Question 3

I

Answer 3

investment

Question 4

G

Answer 4

Government spending

Question 5

NX

Answer 5

net exports

Question 6

Yd (d come apice) e formula

Answer 6

Disposable income

Y + Tr - Ta

Question 7

Tr

Answer 7

(gov) transfer to the private

Question 8

Ta

Answer 8

Total taxation

Question 9

Sp

Answer 9

Private savings

Question 10

BD

Answer 10

(Gov) budget deficit

Question 11

Sg

è inverso a?

Answer 11

government savings
inverso a BD
Sg= - BD

Question 12

AD

Answer 12

aggregate demand

Question 13

P

Answer 13

price level

Question 14

K

Answer 14

physical capital stock

Question 15

AS

Answer 15

aggregate supply

Question 16

M

Answer 16

offerta di moneta

Question 17

L

Answer 17

domanda di liquidità

Question 18

wage equation

Answer 18

W = PAF u(-) z(+)

Question 19

real wage equation

Answer 19

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

Question 20

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

Answer 20

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

Question 21

Consumption function

Answer 21

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

Question 22

disposable income

Answer 22

YD(apice) = Y +Ta -Tr

Question 23

c piccola

Answer 23

marginal propensity to consume

Question 24

C grande con la barretta sopra

Answer 24

autonomous consumption

Question 25

Investment function

Answer 25

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

Question 26

I

Answer 26

Investment in physical (fixed) capital

Question 27

I grande con la barretta sopra

Answer 27

Autonomous investment

Question 28

b

Answer 28

Sensitivity of investment with respect to r

Question 29

r | given by...?

Answer 29

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

Question 30

p greco e(apice)

Answer 30

Expected inflation rate

Question 31

i

Answer 31

Nominal interest rate | i = r +p greco e apice

Question 32

Fiscal policy

Answer 32

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

Question 33

Aggregate demand definition and equilibrium condition in a CLOSED ECONOMY

Answer 33

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

Question 34

The IS curve shows _____

Answer 34

The IS curve shows all the combinations of r and Y | that result in goods market equilibrium

Question 35

The equation for the IS curve is

Answer 35

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

Question 36

A con la barretta

Answer 36

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.

Question 37

MONEY DEMAND

Answer 37

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

Question 38

real MONEY DEMAND is given by

Answer 38

M d apice / P = kY - hi | k e h sono behavioral numbers