Business Cycle Model

Goods Market (Keynesian Cross), Production Function, and Labour Market

Inputs

Goods Market, national

Autonomous consumption:

Marginal propensity to consume:

Investment:

Government expenditures:

Taxes:

Production Function

Produktivity:

Exponent of K:

Capital stock:

Labour Market

Labour supply = ... w/P:

Foreign Trade

Marginal propensity to import:

Export:

Primary Outputs (steady state values)

Goods Market, national

Output, actual:

Consumption:

Savings:

Production Function

Full employment output:

Labour Market (Full Employment)

Quantity of labour:

Real wage:

Business Cycle Policy

Output Gaps

Goods Market

Output gap, abs.:

Output gap, rel.:

Labour Market

Quantity of Labour, required:

Unemployment, abs.:

Unemployment, rel.:

Necessary Fiscal Policy for Gap Closing

a) ∆ Government expenditures:

or b) ∆ Taxes:

Secondary Outputs

Goods Market

Average propensity to consume:

Investment multiplier:

Break-even point (at S=0):

Marginal propensity to save:

Autonomous savings:

Fiscal policy

Budgetary balance:

Government expenditures multiplier:

Taxes multiplier:

Production Function

Exponent of L:

Foreign Trade

Import:

Trade balance = Net exports = X - M:

Trade balance, rel.: