ADVANCED MACROECONOMICS Lecture 6 Traditional Keynesian Theory 电子科大经管学院马捷
ADVANCED MACROECONOMICS Lecture 6 Traditional Keynesian Theory 电子科大经管学院 马捷 1
Outline Income and Expenditure ·IS Curve LM Curve ·AD Curve ( Open Economy Labor Market AS Curve 电子科大经管学院马捷 2 元元元元元
Outline Income and Expenditure IS Curve LM Curve AD Curve Open Economy Labor Market AS Curve 电子科大经管学院 马捷 2
Expenditure -Actual or planned? For a closed economy: E=E(Y,i-π°，G,T),0<E<1 E-CY-T)1-)+G S=I Y=C+SP+T →{S>1 E=Y S<I 电子科大经管学院马捷 3 元元元元元
Expenditure Actual or planned? For a closed economy: 电子科大经管学院 马捷 3 S I S I S I E Y Y C S T E C Y T I i G E E Y i G T P e Y e E + + ( ) ( ) ( , , , ), 0 1
The Keynesian Cross E Real Expenditure(Output) Unwanted inventoriesT Why less than45°？ Planned Expenditure Unwanted inventories 45° Y 电子科大经管学院马捷 元元元兄元
The Keynesian Cross 电子科大经管学院 马捷 4 E Real Expenditure(Output) Planned Expenditure Y 45 º Why less than 45 ? Unwanted inventories Unwanted inventories ↓
The IS Curve E E=Y E=(Y,i'-e,G,T) E=(Y,i-e,G,T) Decrease r Interest rate (i) IS Income (Y) 电子科大经管学院马捷 5 元元元兄元
The IS Curve 电子科大经管学院 马捷 5 E E=Y E=(Y, i’ - π e, G, T) Y Interest rate （i） IS Income （ Y ） E=(Y, i - π e, G, T) Decrease r