Class Notes (905,025)
CA (538,335)
UTSG (45,721)
ECO (1,632)
ECO100Y1 (439)
Jack Carr (32)
Lecture

AE&Y EQB

3 Pages
132 Views

Department
Economics
Course Code
ECO100Y1
Professor
Jack Carr

This preview shows page 1. Sign up to view the full 3 pages of the document.
AE/ Y Equilibrium
Gov Sector
oRelationship btw gov spending and Y(GDP) depends on politics of party in power 
gov spending defined as Autonomous: G = G
oBut gov also implies taxation and transfer payments
Net Tax fn (T) = Taxes Transfer Payments
oSince taxes and transfer payments both autonomous and a fn of Y
Net Taxes (T) = t0 + tY
t = net tax rate = T/Y > 0 because increase GDP increases Taxes 
and decreases Transfer Payments
Foreign Sector (X-IM)
oExports
Not significantly related to domestic Y but foreign Y
X = X
oImports
Significantly related to domestic Y
IM = m0 + mY
m = dIM/dY > 0
MACROMODEL (as a fn of Y)
o equations are:
C = a + bYd (Consumption fn)
I = i0 + iY (Investment fn)
G = G (Gov spending fn)
X = X (Export fn)
www.notesolution.com

Loved by over 2.2 million students

Over 90% improved by at least one letter grade.

Leah — University of Toronto

OneClass has been such a huge help in my studies at UofT especially since I am a transfer student. OneClass is the study buddy I never had before and definitely gives me the extra push to get from a B to an A!

Leah — University of Toronto
Saarim — University of Michigan

Balancing social life With academics can be difficult, that is why I'm so glad that OneClass is out there where I can find the top notes for all of my classes. Now I can be the all-star student I want to be.

Saarim — University of Michigan
Jenna — University of Wisconsin

As a college student living on a college budget, I love how easy it is to earn gift cards just by submitting my notes.

Jenna — University of Wisconsin
Anne — University of California

OneClass has allowed me to catch up with my most difficult course! #lifesaver

Anne — University of California
Description
AE Y Equilibrium Gov Sector o Relationship btw gov spending and Y(GDP) depends on politics of party inower gov spending defined as Autonomous: G = G o But gov also implies taxation and transfer payments Net Tax fn (T) = Taxes Transfer Payments o Since taxes and transfer payments both autonomous and a fn of Y Net Taxes (T) = 0+ tY t = net tax rate = TY > 0 because increase GDP increases Taxes and decreases Transfer Payments Foreign Sector (X-IM) o Exports
More Less
Unlock Document


Only page 1 are available for preview. Some parts have been intentionally blurred.

Unlock Document
You're Reading a Preview

Unlock to view full version

Unlock Document

Log In


OR

Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit