User:Nick Gardner /Sandbox: Difference between revisions

Revision as of 03:25, 21 November 2009

Let:-
    y = the thenational income
    N = numbers employed
    W = the money wage
    P = the price level
    M = the money supply
    l =
    L =

then:-

The demand for money

M = lPy + L(y)

The consumption function

s = s(y)

The production function

y = y(n)

The labour market

dy/dn = W/P

Investment

i = i(r)

Savings

s = i

Sticky wages

W =W_o,

@@ Line 3: / Line 3: @@
 Let:-<br>
-&nbsp;&nbsp;&nbsp;&nbsp;y&nbsp;=&nbsp;national income<br>
+&nbsp;&nbsp;&nbsp;&nbsp;y&nbsp;=&nbsp;the thenational income<br>
-&nbsp;&nbsp;&nbsp;&nbsp;y&nbsp;=&nbsp;national income<br>
+&nbsp;&nbsp;&nbsp;&nbsp;N&nbsp;=&nbsp;numbers employed<br>
-&nbsp;&nbsp;&nbsp;&nbsp;y&nbsp;=&nbsp;national income<br>
+&nbsp;&nbsp;&nbsp;&nbsp;W&nbsp;=&nbsp;the money wage<br>
-&nbsp;&nbsp;&nbsp;&nbsp;y&nbsp;=&nbsp;national income<br>
+&nbsp;&nbsp;&nbsp;&nbsp;P&nbsp;=&nbsp;the price level<br>
-&nbsp;&nbsp;&nbsp;&nbsp;y&nbsp;=&nbsp;national income<br>
+&nbsp;&nbsp;&nbsp;&nbsp;M&nbsp;=&nbsp;the money supply<br>
-&nbsp;&nbsp;&nbsp;&nbsp;y&nbsp;=&nbsp;national income<br>
+&nbsp;&nbsp;&nbsp;&nbsp;l&nbsp;=&nbsp;<br>
+&nbsp;&nbsp;&nbsp;&nbsp;L&nbsp;=&nbsp;<br>
 then:-<br>