# Macro Ii

Submitted By snowstorm
Words 3255
Pages 14
The Mathematics of Simple
Macroeconomic Models

There are several advantages in presenting economic models in the form of equations. Equations are very concise; they readily give quantitative answers; and they are the language of most practising economics.

Unfortunately, for a large proportion of students beginning the study of macroeconomics, the first sight of equations in the course is a traumatic experience. Old fears about their mathematical ability can make them doubt their capacity to cope with macroeconomics. It may even result in their premature withdrawal from the subject.

Fortunately, in the vast majority of cases such doubts are unfounded. Consequently, once fears are removed, these students cope quite happily with the equations in macroeconomics.

This chapter is designed to allay these old fears about mathematics. It does this by means of a step-by-step examination and manipulation of the equations that a student first meets in macroeconomics. Once the student has mastered these equations, the new-found confidence should enable him or her to tackle most of the elementary mathematics that macroeconomics requires.

THE FIRST MODEL

The first model in equation form seen by macroeconomics students is usually:

Y = C + 1 (16-1) C = Co + cY (16-2) I = Io (16-3)
It is convenient to think of the symbols in these equations as words, and the equations themselves as sentences. Thus it is possible to translate an English sentence into an equation or an equation into an English sentence.

First consider the symbols in this model. Y translated into English is the equilibrium level of income, C is planned consumption; I is planned investment; c is the marginal propensity to consume; Co is autonomous consumption, meaning that it is a fixed amount of consumption that occurs no matter what the level of income; and Io is autonomous…...

### Similar Documents

Free Essay

#### The Following Questions

...ORG b.START c.LTORG d.LITADR 4.Intermediate code using_____leads to unbalanced pass Structure of the assembler. a.variant I b.variant II c.variant I and II both d.None of these Q.2) state true or false(comment for false statement) 1.Assembler is application software. 2.Declarative statements are used to declare variables & constants. 3.SYMTAB contains all opcodes. Q.3)Answer the following questions: 1.Give syntax of assembly language statements. 2.What are the drawbacks of single pass assembler?How they can avoided? 3.Explain with an example,the significance of EQU statement in assembly language. 4.What are the features of assembly language? 5.What is the role of assembler directives used in the assembly language. 6.Consider the following program. START 100 READ A LOOP MOVER AREG,A SUB AREG, =’1’ BC GT,LOOP STOP A DS 1 LTORG Chaptrer 4:Macros & Macro Preprocessor Q.1)Fill in the blanks: 1.Number of positional & keyword parameters are Stored in_____ a.MDT b.APTAB c.KPDTAB d.MNT 2.Macro expansion means__________ a.Elimination of macro Definition b.Macro definition replaced with macro call. c.Elimination of macro call d.macro call replaced with macro definition. 3._________data structure maintains default values Specified in prototype statements. a.APTAB b.KPDTAB c.PNTAB d.None of......

Words: 1377 - Pages: 6

#### Marketing

...studymode.com/essays/Burberry-Strategic-Analysis-650914.html Content Abstract I. Introduction II. Burberry macro business environment a. Macro environmentPEST Customers III. The current market IV. Targeting &competitors Competitors V. Competitors VI. Porter 5 forces Company VII. Segmentation strategy VIII. Positioning strategy IX. Marketing mix 4Ps X. SWOT XI. Conclusion and recommendations XII. Reference XIII. Meeting record Chapter I Introduction Burberry’s main mission was to sell business to the world (Friedman 2011). Burberry, the multinational company, was established in Wales in the year 1856, which started with a small outfitter’s shop in Basingstoke, Hampshire, England (The Telegraph 2011). Thomas Burberry started by a draper’s apprentice when he was 21-year old, and then the company became famous during the First World War when it won the contrast to supply trench coats to the British Army. Queen Elizabeth II and the Prince of Wales have put the closure to grant the company Royal Warrants. 3modeRetailing , wholesale, licensing The history of Burberry Business Leadership and culture at Burberry internal Strategies deployed Kapferers brand identity prism Chapter II Macro-environment This PEST analysis was carried out for Burberry PLC as an aid to decision making, by looking the external macro environment burberry can plan for the future and analysis the risks that occur within that market.......

Words: 668 - Pages: 3

#### Macro

...Definition of 'Macroeconomics' The term Macro has been taken from the Latin word Macros which means big. The field of economics that studies the behavior of the aggregate economy. Macroeconomics examines economy-wide phenomena such as changes in unemployment, national income, rate of growth, gross domestic product, inflation and price levels. Macroeconomics Concerns | Production | Prices | Income | Employment | NationalProduction/OutputTotal Industrial OutputGross Domestic ProductGrowth of Output | Aggregate Price LevelConsumer pricesProducer PricesRate of Inflation | National IncomeTotal wages and salariesTotal corporate profits | Employment andUnemployment in theEconomyTotal number of jobsUnemployment rate | Therefore, as is clear from the above, the following issues/subjects define the scope of Macro Economics: 1. Aggregates of national income and its determination 2. Theories of Income and Employment. 3. Theory of Money and Banking. 4. Fiscal Theory. 5. Balance of Payment. Scope and Importance of Macro Economics Macro Economics is of much theoretical and practical importance. Let us see what are the importance and the scope where macro economics are being used. 1. To Understand the working of the Economy The study of macro economics variables is requisite for considerate the operation of the financial system. Our main economic complexities are associated with the performance of total income, irredundant and the normal price scale in......

Words: 651 - Pages: 3

#### Kfc Marketing Fundamental

...Contents I - Introduction 2 II - Micro Environment 2 1. Customers 2 2. Partners 3 2.1. Suppliers 3 2.2. Franchisees 3 3. Competitors 3 4. Industry 4 III - Macro Environment 4 1. Political 5 1.1. Carbon tax 5 1.2. Minimum wages 5 2. Social Cultural 5 3. Economic 6 IV - Conclusion 6 V - References: 6 I - Introduction KFC, which has full name as Kentucky Fried Chicken, is one of well-known fast food brand names in the world due to their effective marketing strategies. To create good marketing strategies, KFC needs to understand the market by conducting a market research and collecting information about micro and macro environment. Therefore, they can influence factors in the micro environment and respond to potential macro environmental factors that can affect to them within next 12 months in Australia. This report focuses on marketing concepts which explain micro and macro environment. These key marketing concepts will be analysed and explain how KFC applied into their strategies. This report is based on academic resources such as marketing lecture notes of Insearch, text books of Philip Kotlers and academic online resources. II - Micro Environment Micro environment is examined as an environment in which the company can indirectly influence such as customers, partners, competitors and industry. For each factor, the company need to have suitable strategies to affect. 1. Customers Under marketing concepts of Philip Kotler......

Words: 1678 - Pages: 7

Free Essay

#### Backlog Time Table Sse

...(Sem I-VI) is scheduled as follows: Assignment Collection date | Course Title &Course Code Batch 2011-14 | | Assignment Submission | 2011-14 | | 10-Sep-1411:00 a.m. to 12:30 p.m. | 11-Sep-1411:00 a.m. to 12:30 p.m. | Macro-Economic Theory I (102)Mathematics I (105)Micro Economics II (201)Computer & its Application (505) | | 11-Sep-1411:00 a.m. to 12:30 p.m. | 12-Sep-1411:00 a.m. to 12:30 p.m. | Macro-Economic Theory II (202)Indian Economics II (203)Business Communication (207) | | 12-Sep-1411:00 a.m. to 12:30 p.m. | 13-Sep-1411:00 a.m. to 12:30 p.m. | International Economics (301)Public Finance (302)Business Law-I (303) | | 15-Sep-1411:00 a.m.to 12:30 p.m. | 16-Sep-1411:00 a.m. to 12:30 p.m. | Public Administration & Policy (304)Theory of Political Economy in India (307)/ Mathematical Economics (308) Indian planning Process & Strategies (401) | | 16-Sep-1411:00 a.m. to 12:30 p.m.3:00 p.m. to 04.30 p.m. | 17-Sep-1411:00 a.m. to 12:30 p.m.3:00 p.m. to 04.30 p.m. | Economic Thought (402)Indian banking & financial System (403)French (404) / German (405) / Spanish (406) | | 17-Sep-1411:00 a.m. to 12:30 p.m. | 18-Sep-1411:00 a.m. to 12:30 p.m. | Research Methodology (501)Industrial Economics (402)Business Law II (503) | | 18-Sep-1411:00 a.m. to 12:30 p.m. | 19-Sep-1411:00 a.m. to 12:30 p.m. | Development Economics (504)Intermediary Econometrics (507)Portfolio Management (601) | | 19-Sep-1411:00 a.m. to 12:30 p.m. |......

Words: 518 - Pages: 3

Free Essay

#### Blah

...How to Create a Microsoft Access Macro to Import Information from a Text (.txt) File: Macros are operations used in Microsoft Access in order to automate functions in databases. They can be used to open reports, run queries, update the databases and import from various file formats such as Excel (.xls), database, (.dbf), and text (.txt). This article will explain, in a step-by-step format, how to import information from a text file, format the information for Access, and create the macro so each step will not need to be created every day. This will save you time and put some of the database operations into the hands of the end-users and freeing you to do other things. Prior to creating the macro, the creation and saving of the import specification will be explained. Importing from a text document (.txt) Prior to importing a text file, eliminate any spaces in front of the column headings. Usually, text file columns are separated by using semicolons. Ensure that there are no spaces between the semicolon and the column heading. By eliminating the spaces, you prevent importing errors and column heading issues so Access can recognize the headings. 1. Save then close the .txt file. 2. Next, go to "New" on the "Tables" tab. 3. Click on "Import table." 4. Change the "files of type" to Text Files. 5. Navigate to the text (.txt) file that you would like to import. 6. The "Import Text Wizard" dialog box will open. Select if your data is separated by......

Words: 916 - Pages: 4

#### I Am Trying.

...Objectives of the paper: With giving an overview of what the monetary policy really is and narrating how the central bank formulates the monetary policies and takes the necessary steps for its implementation in Bangladesh, this paper targets to analyze the impact of monetary policy on the inflationary situation. Methodology: The study depends on I.            Extensive literature review of external sources on central banks on formulation and implementation ofmonetary policy for the country II.            Publications of Bangladesh Bank Scope of the paper: 1.  First of all, monetary policy is a deep sea to swim through. Though Bangladesh practices and implements a limited number of instruments, the mix is always complex to grab the main idea behind it. Extensive analysis of the mix is beyond the scope of the paper. 2. Framing of indices of central bank policies is beyond the limit of this paper. 3. Structured data is hard to collect from the departments of Bangladesh Bank, so complex calculations and data analysis is deliberately avoided. Bangladesh Bank (BB): The central bank of the country, was established as a corporate body by the Bangladesh Bank Order, 1972 (P.O. No. 127 of 1972) with effect from 16 December, 1971 by acquiring the liabilities and assets of erstwhile State bank of Pakistan in East Pakistan. Bangladesh Bank is the central bank of the country | | There is a cross departmental committee on monetary policy (MPD) headed by a deputy governor, which......

Words: 3215 - Pages: 13

Free Essay

#### What Is Photo Journalism and Its Effect to the Community

...FOCUS |Maximum |minimum | |small aperture opening |large aperture opening | |large permissible circle of confusion |small permissible circle of confusion | |more longer focal length |shorter focal length | |short subject camera distance |long camera subject distance | (ii) Aperture as a controller of depth of field The depth of field refers to the area from near to far a scene that is acceptably sharp in a photograph. A change in aperture size affects the sharpness of the image as well as the amount of light entering the camera. This implies that as the aperture is stopped down and gets smaller, more of the background and foreground in a given scene becomes sharp. Conversely, the area of acceptable sharpness in a picture is known as depth of field. Examining the depth of field is a somewhat more difficult with a twin lens camera or a camera with a simple viewfinder window. Using the shutter and aperture together Both the shutter speed and aperture affect the amount of light that......

Words: 2504 - Pages: 11

...CHRIST UNIVERSITY Mid SEMESTER EXAMINATION JAN 2014 ( II Sem UG and VIII BHM) : Time: 9:30 to 11:30am Day & Date | 16/01/2014Thursday | 17/01/2014Friday | 18/01/2014Saturday | 20/01/2014Monday | 21/01/2014Tuesday | 22/01/2014Wednesday | II Sem -B.A Programmes HEPEPS | English | Languages/Ad. English | | Political Science | Principles of Macro Economics | Contemporary IndiaSociology | PSEngPSEcoJPEng | English | Languages/Ad .English | | BasicPsychologicalProcesses -II | Principles of Macro Economics British Literature | Foundations of SociologyJournalism | CEP | English | Languages/Ad .English | | BasicPsychologicalProcesses -II | British Literature | Software applicationFor print media & the web | TCE(Theatre Studies) | | | | Introduction toMusic & Dance –II | | | PEP | English | Languages/Add.English | | Basic PsychologicalProcess –II | British Literature | Dynamics of DanceMusic & Theatre | II Sem -B.Sc Programmes CME | English-- | 9:30 to 11:30 amLang/Ad .English | | Computer Science Data Structures & operating system | Electronics | Differential Calculus | | | 2:30 to 4:30 pmIntegral Calculus | | | | | EMSCMS | English | 9:30 to 11:30 amLang/Ad .English | Statistics ( 9:30 to 11:30 am)(Examination will be held in separate room for Stats; check the notice board) | Computer......

Words: 2645 - Pages: 11

#### Specimen Paper

...-Answer Question 1 (compulsory) from Part I and five questions from Part II. The intended marks for questions or parts of questions are given in brackets [ ]. ---------------------------------------------------------------------------------------------------------------- PART I (30 Marks) Answer all questions. Question 1 Answer briefly each of the following questions: (i) (ii) (iii) (iv) (v) (vi) (vii) State the Law of Demand. Mention two assumptions of the Law. What is meant by substitution effect? Define income elasticity of demand. With the help of a diagram, explain one exception to the Law of Supply. What is marginal physical product? How can marginal physical product be obtained from total physical product? With the help of a diagram, show how the equilibrium price and quantity change, when supply increases and demand remains unchanged. Define monopsony. Explain one feature of monopsony. [15 2] (viii) Differentiate between explicit cost and implicit cost. (ix) (x) (xi) (xii) What is meant by marginal efficiency of capital? Explain how bank rate can be used to control credit in an economy. How can private income be obtained from domestic income? Define fiscal policy. Mention the tools of fiscal policy. (xiii) What is meant by revenue deficit? (xiv) Differentiate between stock and supply. (xv) Explain the meaning of full employment in macro economics. 1 ISC Specimen Question Paper 2013 PART II (70 Marks) Answer any five questions. Question 2 (a) (b) Discuss any two......

Words: 661 - Pages: 3

#### Oekraine Macro Economics

...Name Faculty: Please add Faculty Name Due Date: January 5, 2015 Macro Economics: Ukraine 1. Executive summary Geo-political tensions have pushed Ukraine into a deep crisis. Real GDP is in sharp decline, expected to contract by 8% in 2014 with a continued retrenchment in 2015. The conflict in the East has disrupted economic activity, which in its turn made the collection of taxes difficult. The exports have declined and the overall consumer and investor confidence fell significantly. At the same time weak national revenue performance, rising expenditure to tackle the crisis along with a growing Naftogaz deficit make fiscal adjustment more challenging. Ukraine government has allowed a free floating exchange rate resulting in a 50% devaluation of the currency (figure 4). Import gas prices are high and energy efficiency of the national industries is poor. The balance of payments pressure remains high due to large external debt refinancing needs, low FDI and limited access to external financing. This means that challenges are ahead of Ukraine with deteriorating relations with Russia, a weak banking sector, low FX reserves, large debt repayments needs (for the next 2 years) together with constrained domestic consumption altogether pose risks and affect prospects for recovery. Positive factors for Ukraine are as follows: (i) the strong external support for Ukraine (\$27bn in the next 2 years), (ii) authorities are motivated to reform, (iii) trade relations......

Words: 2862 - Pages: 12

Free Essay

#### Avoiding Taxes - Essay

...ROOM ........ 35 PRECAUTIONS CAUTIONS ON INSTALLATION For heat dispersal, leave at least 20 cm/8 inch of space between the top, back and sides of this unit and the wall or other components. • Do not obstruct the ventilation holes. REMOTE CONTROLLER OPERATION ... 36 CONTROLLING MARANTZ COMPONENTS ................ 36 BASIC OPERATION ...................................................... 38 PROGRAMMING MACROS .......................................... 41 CLONE MODE ............................................................... 43 SETUP ........................................................................... 44 20 cm (8 ins.) AV SURROUND RECEIVER SR5500 SETUP ............................................... 18 ON SCREEN DISPLAY MENU SYSTEM ...................... 18 1 INPUT SETUP (ASSIGNABLE DIGITAL INPUT) .............................. 19 2 SPEAKER SETUP ..................................................... 19 3 PREFERENCE .......................................................... 22 4 PL II (PRO LOGIC II) MUSIC PARAMETER ............ 22 5 CS II (CIRCLE SURROUND II) PARAMETER ........ 22 6 MULTI ROOM ............................................................ 23 7 7.1 CH INPUT LEVEL ................................................ 23 8 DC TRIGGER SETUP ............................................... 23 ENTER TROUBLESHOOTING ....................... 45 TECHNICAL SPECIFICATIONS ....... 46 DIMENSIONS .................................... 46 20 cm (8......

Words: 44992 - Pages: 180

#### Human Resource Information System

...UNIT 8 HUMAN SYSTEMS RESOURCE INFORMATION Structure 8.0 8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 8.9 Objectives Introduction Information: Some Basic Guidelines Human Resource Information at Macro Level Human Resource Information at Micro Level Effective Human Resource Information System: Some Approaches Why Computerise Personnel Records and Information Systems? Computer Applications in Human Resource Management: An Overview Let Us Sum Up Clues to Answers 8.0 OBJECTIVES After having read this Unit, you should be able to: • understand the dynamics of information system and its use as a tool for measurement, • examine the significance of information in human resource management, • appreciate the approaches to the information system at the macro and micro levels, • consider the shortcomings of manual information system, and • discuss merits of computerisation and its applications in effective Human Resource Information System. 8.1 INTRODUCTION Human Resource Planning is concerned with the controlled utilisation of human resources to achieve pre-set objectives, both short-term and long-term. It has three main features: 1) Demand work involving analysing, reviewing, and attempting to forecast the number in terms kind, level, functions, etc. 2) Supply work attempting to predict what action is, and will be needed to ensure that the required numbers are available. 3) Designing the interaction between demand and......

Words: 4923 - Pages: 20

#### Human Resources Information Systems

...UNIT 8 HUMAN SYSTEMS RESOURCE INFORMATION Structure 8.0 8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 8.9 Objectives Introduction Information: Some Basic Guidelines Human Resource Information at Macro Level Human Resource Information at Micro Level Effective Human Resource Information System: Some Approaches Why Computerise Personnel Records and Information Systems? Computer Applications in Human Resource Management: An Overview Let Us Sum Up Clues to Answers 8.0 OBJECTIVES After having read this Unit, you should be able to: • understand the dynamics of information system and its use as a tool for measurement, • examine the significance of information in human resource management, • appreciate the approaches to the information system at the macro and micro levels, • consider the shortcomings of manual information system, and • discuss merits of computerisation and its applications in effective Human Resource Information System. 8.1 INTRODUCTION Human Resource Planning is concerned with the controlled utilisation of human resources to achieve pre-set objectives, both short-term and long-term. It has three main features: 1) Demand work involving analysing, reviewing, and attempting to forecast the number in terms kind, level, functions, etc. 2) Supply work attempting to predict what action is, and will be needed to ensure that the required numbers are available. 3) Designing the interaction between demand and......

Words: 4923 - Pages: 20

Free Essay

#### Internship Report of Corporate Credit in Bank

...standard -2004" is popularly known as Basel-II. It is a capital adequacy related standard framed by Basel committee. After the successful implementation of 1988 accord in more than 100 countries, the Basel Committee on Banking Supervision reached an agreement on a number of important issues for promoting best and uniform banking practices as well as setting standards and guidelines for supervisory function. Following extensive interaction with banks, industry groups and supervisory authorities that are not members of the Committee, the revised framework was issued on 26 June 2004, which is being regularly revised and updated. The Basel-II aims to replace Basel I and to make the capital framework more risk sensitive. Basel II has recommended major revision on the international standard on bank's capital adequacy, which requires banks to implement risk management policies that closely align banks capital with its economic capital. The Basel II has been introduced basically for the protection of depositor's interest by preserving the integrity of capital in Banks. The Basel Committee formulated a set of new global regulatory standards for bank capital, liquidity and macro prudential regulations, collectively called Basel III 1.2 Introduction The Basel Accords refer to the banking supervision Accords (recommendations on banking regulations)—Basel I, Basel II and Basel III—issued by the Basel......

Words: 2395 - Pages: 10