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.:
%