ECON 102 Lecture Notes - Lecture 3: Ceteris Paribus, Macroeconomic Model, Consumption Function

• School: UBC
• Department: Economics
• Course: ECON 102
• Professor: Robert Gateman

Document Summary

Econ 102 lecture 3 national income and expenditure part i (c and i: desired v. actual expenditure a. P - general price level i - interest rates e - exchange rates. National income, y, is the bull"s eye i. ii. iii. iv. v. vi: we will use monetary/fiscal policy to aim at y, 4 stages to develop our macroeconomic model spendthrift frugal. X and m: goal: find relation between p (the general price level) and y (national income) Micro: was individual p and q: desired v. actual variables i. ii. iii. Actual = actual; measured by niea; subscript a . Ae = c + i + g + nx (defn) = f(y) (theory: autonomous v. induced. Exports - depend on foreign y i. ii. iii. iv. Imports - depend on canada"s y: major assumptions asad model i. ii. iii. iv. v. Y* is constant: desired consumption expenditure i.