(Continued with question 1 in exercise for chapter 3). Suppose instead of given 2000 there is an investment function which takes the form

Normative Definition: Economics is the science that studies how to efficiently allocate economic resources Positive Definition: Economics is the science that studies how an economy operates or how economic variables are determined under the given economic system. The System of an Economy:

Question 1: Suppose in an open economy the consumption function take the form C 8Yd =100 + 0. Tax is the proportion of income with the tax rate to be given by 0.2. Meanwhile import depends on the domestic income with the function given by

Defintion: GDP is the total market value of all final goods and services produced by a country. Final versus Intermediate: By \final\, we mean the goods and service that are purchased for final use by purchaser and not for resale or further processing. The meaning intermediate is opposite to final. Value Added: GDP not only reflects the market value of final goods and service, but also reflect the income generated from producing these final goods and service

Macroeconomics is the most disputed, confused, yet excited field in economics. This course introduces you how economists think about those macroeconomic problems such as inflation, unemployment and recession, and how macroeconomic policies could be used to resolve these problems. We will find that economists may give you many different answers

Chapter 1: The Science of Macroeconomics Chapter 2: The Macroeconomic Variables Part II: Keynesian Macroeconomic Analysis Chapter 3: The Product Market Analysis Chapter 4: The Money Market Analysis Chapter 5: The IS-LM Model

The Multiplier Process as Market Exchange Process A Contribution to the Micro Foundation of Keynesian Macroeconomics Abstract Traditional equilibrium analysis has been incorrectly founded once an \ordering issue\ is concerned. To circumvent this problem, the autonomous demand, which has been missed in traditional microeconomic analysis, has to be introduced into the system as a starting point of a sequence of market exchanges. Following this direction, Keynes's multiplier analysis can also be viewed as a description of the process through which market exchanges are generated. Further

I guess I have to come out to reply to those who concern with the nature rate of unemployment. First, What is the natural rate of unemployment? It is assumed to be the unemployment rate at the steady state or equilibrium. Note that equilibrium here is not referred to the common demand-supply equilibrium, but to a state at which things are not changed, or remain the same. More specifically, suppose we can have an economy that could be expressed by the following dynamic system

I guess I have to come out to reply to those who concern with the nature rate of unemployment. First, What is the natural rate of unemployment? It is assumed to be the unemployment rate at the steady state or equilibrium. Note that equilibrium here is not referred to the common demand-supply equilibrium, but to a state at which things are not changed, or remain the same. More specifically, suppose we can have an economy that could be expressed by the following dynamic system

Integration of Market Exchange and Money Circulation Abstract: Money as a medium of exchange is circulated along with market exchanges. The process of market exchanges can be viewed as a sequence of trades with the starting point to be an autonomous demand. Money in this process is naturally integrated with the proceeding of market