ECON 1P92 Lecture Notes - Ceteris Paribus, Disposable And Discretionary Income, Consumption Function

95 views9 pages
elizabethkandelaki and 39709 others unlocked
ECON 1P92 Full Course Notes
4
ECON 1P92 Full Course Notes
Verified Note
4 documents

Document Summary

Government is and important variable in the economy> Only a flow of funds from government to household. Tax rates are autonomous policy variables, but revenues vary with gdp: So when y rises by , tax revenues rise by t x . The budget balance: [ t g ] [ t - g ] revenue minus expenditures. G includes all levels of government in desired ae in public saving. [in canada combined purchases of provincial and municipal governments is larger than federal government ] Autonomous with respect to canadian national income. Change in imports caused by a change in gdp. Change in m / change in y. Mpm = m = 20/100 = 0. 2. Net export function: nx = x im. Im increase as gdp [ y ] increase. Uses foreign currency to buy foreign income-earning assets. Ceteris paribus, canadian exports [ x ] increase. A rise in canadian prices relative to foreign prices:

Get access

Grade+
$40 USD/m
Billed monthly
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
10 Verified Answers
Class+
$30 USD/m
Billed monthly
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
7 Verified Answers

Related Documents

Related Questions