ECON 101 Lecture 2: The Saving and Investment Model
Document Summary
Just a different way to represent shoutrun the adcurve equilibrium and looks like. But we"ll consider how realgoods can be loaned fisial policy may affect interest rates real a its really not t borrowed t how yes there is a financial mkt representation of this. Translate the context w a short run equilibrium condition into a different different interpretation. Y c i gtx m take this condition we income that. Y c g t we define saving s as all consumed by households national saving. X m or government assume for now that. Lin equilibrium let tax t be income subtracted t from in taxes. T now put intome so we get after so we get a measure we add t. Since subtract equation there no effect added to g detect the of of budget surplus or t from one side on the equality so we rewrite.