User:Nick Gardner /Sandbox: Difference between revisions
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==The Keynesian equation system== | ==The Keynesian equation system== | ||
Let<br> | Let:-<br> | ||
y = national income<br> | |||
y = national income<br> | |||
y = national income<br> | |||
y = national income<br> | |||
y = national income<br> | |||
y = national income<br> | y = national income<br> | ||
then:-<br> | |||
The demand for money | The demand for money | ||
Revision as of 02:19, 21 November 2009
The Keynesian equation system
Let:-
y = national income
y = national income
y = national income
y = national income
y = national income
y = national income
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 =Wo,