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22 Cards in this Set
- Front
- Back
- 3rd side (hint)
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GDP deflator |
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Labour supply and demand |
u=unemployment rate |
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Inflow/outflow of Labour market |
p = prob to lose the job L = people employed s = prob to find a job U= people unemployed |
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Natural rate if unemployment |
u*= natural unemployment rate p and s prob to lose and to find a job respectively |
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Keynesian Model of Consumption |
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Multiplier in the Keneysian model of Consumption |
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Permanent Income Model |
C = consumption in different periods (1 or 2) Y = Income in different periods (1 or 2) r= interest rate |
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Intertemporal Budget Constraint |
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Quantity Theory Model |
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Phillips Curve |
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Government structural revenues & spending |
a = elasticity of government revenues b= elasticity of government spending |
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Real Exchange Rate (RER) |
!!!! NON ha unità di misura !!!! RER > 1 domestic country is more expensive RER = 1 same prices in both countries RER < 1 domestic country is cheaper |
Not to confuse with Real Interest Rate (RIR) |
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PPP nominal exchange rate |
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Government intertemporal Budget Constraint |
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Covered Interest Parity (CIP) |
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Steady State |
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Golden Rule |
The golden rule is the optimal (= maximized consumption) investment rate between all the possible steady states of an economy a = share of capital of the production function |
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Real Interest Rate (RIR) |
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Not to confuse with Real Exchange Rate (RER) |
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Inflation (two methods) |
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Cobb-Douglass production function |
a = share of Capital 1- a = share of Labour |
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Hotelling Rule |
P(T-n) is the price of the exhaustibe resource at period T - n Pb = Backstop price = price of the last unit of the exhaustibe resource at period T, when the Demand D=0 |
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Sustainable level of government debt |
r = nominal interest rate g = nominal GDP growth D/GDP is the sustainable level of government debt and must be a % Primary Surplus/GDP is also a % and its called primary surplus or primary deficit depending if positive or negative |
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