Macroeconomics, a measure of national income

First of all, at the beginning, it was said that it was a three-sector economy.

Then it involves the three parties of **, enterprises and consumers, the total demand function at this time y=c+i+g, the first question is the savings function, we know that the total investment is equal to the total savings, then y=c+s+g, deformed to s=y-c-g=, wherein, yd is disposable income.

The value is equal to y-t, so the answer given in s=,** is wrong. In the second question, since it is known that savings = investment = 200, substituting the savings function obtained from the first question, the equilibrium national income is calculated as 3800

Macroeconomics essay questions, how does equilibrium national income change, kneel down and ask for detailed answers.

It can be analyzed with an IS-LM curve. Since I can't draw a picture right now, let's give me a detailed idea. It is recommended that you start with what is an equilibrium national income, that is, a national income that is consistent with aggregate demand.

Then draw the IS-LM curve (1) first analyze the IS curve, r = (a + g + e) d y, mainly determined by the product market, y = c + i + g, if consumption, investment or ** expenditure increases, it will make the is curve level move to the right, because the lm curve is determined by the money market, so it will not move (can be drawn to assist analysis), so that the equilibrium national income increases, and vice versa. (2) Re-analysis of the LM curve, r = m hp + ky h, mainly determined by the money market, the increase of money supply will make the lm curve move vertically downward, while the IS curve determined by the product market will not move (can be clearly used to draw a picture to assist the analysis of pure Huai shirt), so that the equilibrium national income increases, and vice versa; Re-analyze the increase in the demand for money (trading demand, speculative demand) so that the LM curve moves vertically upwards, and the same is plotted and analyzed. Finally, the impact of changes in equilibrium national income is briefly summarized.

Summary. Only when the national income is balanced can economic development be healthy and stable.

Equilibrium analysis is conducive to the healthy and stable development of the national economy, and in the case of imbalance, the causes of imbalance are analyzed, reasonable regulation and control measures are adopted, and aggregate supply and demand are adjusted in a targeted manner.

What is the important role of the two concepts of potential national income and equilibrium national income in macroeconomic analysis?

Only when the national income is balanced can economic development be healthy and stable. Equilibrium analysis is conducive to the healthy and stable development of the national economy, and in the case of imbalance, analyze the causes of imbalance, take reasonable regulation and control measures, and adjust aggregate supply and demand in a targeted manner.

Equilibrium national income refers to the closed national income when aggregate demand and aggregate supply are in agreement. Potential national income sales are the amount of national income that can be achieved when full employment is achieved in the economy.

Answer]: A The total amount of products that the country is willing to buy is C+I+G.

b Actual production in the country is C+I+G+(X-M).

c Among the products that the country is willing to buy, the products produced by the country are C+i+G-M.

d The products that are willing to be purchased by the home country are in the middle of the country, and the products supplied by foreign countries are m.

e The number of domestic products that foreign countries are willing to buy is x. $ by the national income identity.

y＝c+i+g+(x-m) (

It can be seen that under the condition that the actual output y is constant, the possible scenarios are:

a Priority supply of domestic output**. ** The purchase of products is (g+g), the level of consumption and investment of domestic residents has decreased to (c+i- g), and the import and export situation of the country remains unchanged.

b Dependent on imports to meet increased expenditures**. The level of domestic household consumption and investment remained unchanged, and domestic imports rose to (m+ g).

c Replace the products used for export in the spring of the original year to meet the expenditure. The level of domestic household consumption and investment remained unchanged, and the country's exports fell to (x-g).

In reality, the three ways A, B, and C play a role at the same time, that is, the increase in expenditure, under the condition that the domestic supply capacity remains unchanged, will increase domestic imports, reduce domestic exports, and reduce the level of domestic private consumption and investment. A certain proportion of the consumption, investment and ** purchase of the country (m (c+j+g)) must be met by imported products. If foreign economic exchanges are not possible and domestic products cannot replace imported products, then domestic consumption, investment and purchases (i.e., aggregate demand) cannot be fully satisfied.

At the same time, a certain proportion of the country's output (x y) is sold abroad, and if there is no foreign economic exchange, and there is no substitution between this part of the product and the domestic product, then the domestic product (aggregate supply) cannot be completely sold.

Answers]: b, c, e

Macroeconomic analysis is to take the entire national economic activity as the object of investigation, and study the aggregates and their changes in various related areas, especially the changes in gross national product and national income and their relationship with social employment, fluctuations in the economic cycle, inflation, economic growth, etc. Therefore, macroeconomic analysis is also known as aggregate analysis or overall analysis. Options A and D belong to the study of microeconomic analysis.

This chapter requires a lot of use of marginal concepts.

Factors of production are inputs used to produce goods and services, and the most important factors of production are capital and labor.

The production function has the characteristics of constant scale returns.

Factor prices are the remuneration paid to the first factor of production: the wages of the workers and the rents of the owners of capital.

In economics, it is assumed that factor supply is fixed, so factor demand is taken into account. Normally, the more l you have, the more products you produce, and the more profits you make. But most production functions have decreasing marginal yields.

The change in profit of employing one more unit of labor: δ profit = mpl p-w, when δ profit = 0, no more labor is added, i.e., mpl = w p, which is called real wage.

In the same way, it can be concluded that the real rental price mpk=r p, r is the capital lease price, and the marginal output curve of capital is also the capital demand curve.

In summary, economic profit = y-(mpl l)-(mpk k), this chapter does not discuss economic profit, but the distribution of national income, hence the deformation of the above equation.

According to Euler's theorem, y is maximum when the economic profit is 0. Here it is necessary to pay attention to distinguish between economic profits and accounting profits of enterprises, economic profits of 0 does not mean that enterprises have no profits, because capital generally belongs to enterprises, and capital gains also belong to the accounting profits of enterprises.

The above part can actually be understood as supply, this part is about demand, and the eternal topic of discussion in economics is supply and demand.

Here r is the real interest rate, which is the nominal interest rate after the inflation rate is removed. In the purchase, the transfer payment is not a purchase, but the opposite of the tax T.

Based on the national income identity, consumption and investment functions, we know.

If supply and demand are in equilibrium, the demand side y is equal to the supply side y, according to the production function y = f(k, l), y is a fixed quantity, the tax t and ** purchase g are determined by policy, so the variable is only the real interest rate r, and it is concluded that r makes supply and demand equal.

We deform y=c+i+g to get the following equation.

The green part is disposable income minus consumption, which is private savings; The blue part is **income minus expenditure, public savings; The two add up to the National Savings. As far as we know, national savings are determined by fixed production y, and t and g are determined by policy, both of which are fixed amounts and are not affected by interest rates. So we draw the investment and savings curve:

Reduced taxes and increased purchases both lead to less investment and higher interest rates. Because a decrease in taxes leads to an increase in consumption, both it and ** purchases will cause a decrease in investment. This seems to explain why the tension between Russia and Ukraine some time ago will lead to Russia's ****, because the war will increase ** purchases, which in turn will lead to higher interest rates and less investment.

Macro perspective: national disposable income = GDP + net income from factors of production + net income from recurrent transfers.

From a micro-statistical point of view: national disposable income = disposable income of urban residents or net income of rural residents. For specific explanations, please refer to the description of statistical indicators.

Disposable income = total household income of urban residents - income tax paid - social security expenditure paid by individuals. The total household income includes salary income, net income from business knowledge, property income (such as interest and dividends, rent income, etc.), and transfer income (such as pension, retirement pension, social assistance income, etc.).

National income accounting, a very important indicator GDP, GDP is the final result of a country's (or region's) production activities in a certain period of time calculated according to the market, there are three forms: value form, income form and product form.

There are three methods of calculation: the production method, the total market value of each industry produced in a certain period.

Income method, GDP = laborer's remuneration + depreciation of fixed assets + net production tax + operating surplus.

Expenditure method, GDP = c + i + g = (x-m).

The basic model of macroeconomic equilibrium, the savings-investment identity, can be divided into two-sector, three-sector, and four-sector identities.

i=s i=s+(t-g) i=s+(t-g)+(m-x)

Consumption Theory: Keynesian Consumption Theory: (1) The law of diminishing marginal propensity to consume (2) Income is the most important factor in determining consumption, and other factors can be regarded as having little change or slight impact in the short term.

3) The average and propensity to spend (APC) decreases as income increases. c= +y

Modigliani's Life Cycle Theory: Emphasizing the relationship between consumption and individual life cycle stages, people plan their living consumption expenses over a longer time frame to achieve the optimal allocation of their consumption throughout the life cycle and maximize the utility of consumption over a lifetime. c= ·wr+c·yl

Friedman's Persistent Income Theory: Persistent income refers to the long-term income that consumers can expect, that is, the stable flow of income that can be maintained over a long period of time. Consumption is considered to be a stable function of enduring income. ct=c·ypt

Savings function, investment function, and investment multiplier.

Keynes believed that as incomes continue to rise, consumption will increase less and less, while savings will increase more and more.

s=y-c=y-( y)=-1- )y

Keynes believed that the lower the real interest rate, the greater the amount of investment. The cost of investment is interest, and the cost of death depends on the real interest rate.

i=i(r)=e-dr

The investment multiplier, also known as the multiple, is the degree to which a change in a factor or variable affects the overall socio-economic activity.

The investment multiplier (k) is: k= =

Simple national income determination, taking a two-sector economy as an example, y= ; Three-sector economy, y=

Factors influencing aggregate demand: interest rates, amount of money, purchases, taxes, expectations, aggregate level.

Technological progress, changes in wage levels, changes in energy, raw materials, and corporate expectations will all affect the total supply.