EC 202: Macroeconomic Theory

Dynamic Keynesian Model of Income Determination
This model corresponds to Blanchard, Macroeconomics, Chapter 4, with a single dynamic element:
production decisions for the current quarter are made based on last period's sales.
 
Marginal Propensity to Consume:
Autonomous Consumption:
Investment Demand:
Government Spending:
Lump-Sum Taxes:
Policy Experiment:
Government SpendingTaxes
IncreaseIncrease
DecreaseDecrease
UnchangedUnchanged
baum, 30 Jan 1999