Chapter 13 Compared Static Analysis of Aggregate Demand Disequilibrium Theory 复学济器院 Chapter 13 Slide 1
Chapter 13 Slide 1 Chapter 13 Compared Static Analysis of Aggregate Demand & Disequilibrium Theory 0 10 20 30 40 90 91 92 93 94 95 96 97 98 99 00
Content ■ A simple closed model a The static solution of simple model a Basic concepts of disequilibrium theory 复表经济学院
Content ◼ A simple closed model ◼ The static solution of simple model ◼ Basic concepts of disequilibrium theory
13.1 Simple Closed Model ■ Simple closed model ● without import and export。 ● The model as follow: income equation: Z=C+l+G consumption function: C=C(r) investment function: I=I(,r) conditionis of financial market equilibriu m Y-Y rate of the increase of price: =HG)+I P equilibrium cond itions: Z=Y 复表经济学院
13.1 Simple Closed Model ◼Simple closed model ⚫without import and export。 ⚫The model as follow: equilibrium Z Y Y Y Y H P P rate L Y i P M onditionis nvestment I I Y r onsumption C C Y income Z C I G = + − = = = = = + + − − ： ： ： ： ： ： conditions of the increase of price ( ) c of financial market' equilibriu m ( , ) i function ( , ) c function ( ) equation .
13.1 Simple Closed Model ■Simp| e closed model aWe can know the characters of some macroeconomic variables based on microeconomics income equation: Z=C+I+G dc MPC: CY ∈ dy Investment: orSO, <0 OL OL demand of money: Ly 0,L <0 aY the relation between nominal rate and real rate r=i-n 复表经济学院
13.1 Simple Closed Model ◼Simple closed model ◼We can know the characters of some macroeconomic variables based on microeconomics： = − = = = = = = + + the r i i L L Y L demand L r I I Y I investment I dY dC MPC C income Z C I G Y i Y r Y ： ： ： ： ： relation between nominal rate and real rate of money 0, 0 0, 0; (0,1); equation
13. 1 Simple Closed Model ■ Simple closed model ● The nature of rate eGeneral knowledge: rate is a opportunity cost of lending, a kind price of money, a compensate for giving up liquidity of money mIcroeconomic knowledge: the time preference for family is just the rate for firm. The real rate is the difference between nominal rate and expectation of the rate of inflation 大学经济学院
13.1 Simple Closed Model ◼Simple closed model ⚫The nature of rate ◆General knowledge：rate is a opportunity cost of lending, a kind price of money, a compensate for giving up liquidity of money ◆Microeconomic knowledge：the time preference for family is just the rate for firm. The real rate is the difference between nominal rate and expectation of the rate of inflation