ECON 2HH3 Chapter : will_macro_2ce_ch09slide2010.pdf
8 Mar 2014
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Outline: the representative consumer, the representative firm, the government, competitive equilibrium, effects of an increase in government purchases, effects of a reduction in the current capital. Stock: effects of an increase in total factor productivity, the recent financial crisis. After studying this chapter, you will be able to. Explain how consumers make their work-leisure and consumption-saving decisions. Explain how firms make their employment investment decisions. Analyse the effects of various shocks such as: changes in government purchases, changes in the current capital stock, changes in total factor productivity, credit market uncertainty. , pays taxes t, and consumes c units of goods and l units of leisure. 9-4: in the future period, she earns real wage income w"(h l"), receives dividend income. ", pays taxes t", and consumes c" units of goods and l" units of leisure: the representative consumer takes the current (future) real wage w (w") and the real interest rate r as given.
