Popular in Macrroeconomics
verified elite notetaker
Popular in Department
This 1 page Class Notes was uploaded by Lori Holte on Saturday October 1, 2016. The Class Notes belongs to at Virginia Polytechnic Institute and State University taught by in Fall 2016. Since its upload, it has received 227 views.
Reviews for 9/21/16 Notes
Report this Material
What is Karma?
Karma is the currency of StudySoup.
You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!
Date Created: 10/01/16
Macroeconomics Unit 2 Notes 9/21/13 2 big problems: o Unemployment (democrats) – devastating effects on people o Inflation (republicans) Affects everyone Business owners benefit from inflation Y = income = production = spending o Tend to rise and fall together o Under Bill Clinton, we had a “jobless recovery” Economy grew without creating jobs because of technology Our model: o Y = C + I + G + (X – M) = DAE o Income = consumption + investment + government + (imports – exports) o DAE = desire aggregate expenditure o Aggregate = all added together o Where: Consumption = f(Y ) d Imports = f(Y d Y d= (1 – tax rate) * Y Y = gross (before taxes taken out) Y d= disposable (after taxes taken out) Y de discretionary (after you pay mandatory bills) Y e= equilibrium (suppliers produce the exact amount of Types of services that consumers want to buy income Y f full employment (how much income all Americans would earn this year if everyone who wants a job has a job) ***Y = income
Are you sure you want to buy this material for
You're already Subscribed!
Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'