日志
Economics -- The Goods Market 2
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* Determinants of Z -- Government Spending
The choice of tax and government spending --> fiscal policy
G and T will be taken as exogenous variables for the 2 arguments
- governments do not behave with the same regularity as consumers or firms
- one of the tasks of macroeconomists is to think about the implications of alternative spending and tax decisions
**The Determination of Equilibrium Output
Assuming that firms do not hold inventories.
Equilibrium in the goods market requires that production Y be equal to the demand for goods Z: Y=Z
And demand in turn depends on income, Y, which is itself equal to production
The choice of tax and government spending --> fiscal policy
G and T will be taken as exogenous variables for the 2 arguments
- governments do not behave with the same regularity as consumers or firms
- one of the tasks of macroeconomists is to think about the implications of alternative spending and tax decisions
**The Determination of Equilibrium Output
Assuming that firms do not hold inventories.
Equilibrium in the goods market requires that production Y be equal to the demand for goods Z: Y=Z
And demand in turn depends on income, Y, which is itself equal to production
