Содержание
- 2. IN THIS CHAPTER, YOU WILL LEARN: What determines the economy’s total output/ income How the prices
- 3. Outline of model CHAPTER 3 National Income 2 A closed economy, market-clearing model Supply side factor
- 4. Factors of production CHAPTER 3 National Income 3 K = capital: tools, machines, and structures used
- 5. The production function: Y = F (K , L) CHAPTER 3 National Income 4 Shows how
- 6. Returns to scale: a review CHAPTER 3 National Income 5 Initially Y1 = F (K1 ,
- 7. Returns to scale: Example 1 CHAPTER 3 National Income 6 KL (zK)(zL) F(K,L) = F(zK,zL) =
- 8. Returns to scale: Example 2 CHAPTER 3 National Income 7 F(K,L) = K 2 + L2
- 9. NOW YOU TRY 8 Determine whether each of these production functions has constant, decreasing, or increasing
- 10. NOW YOU TRY 9 L F (K,L) = K 2 zL F (zK, zL) = (zK
- 11. NOW YOU TRY F (K,L) = K + L F (zK, zL) = zK + zL
- 12. Assumptions CHAPTER 3 National Income 11 Technology is fixed. The economy’s supplies of capital and labor
- 13. Determining GDP CHAPTER 3 National Income 12 Output is determined by the fixed factor supplies and
- 14. The distribution of national income CHAPTER 3 National Income 13 determined by factor prices, the prices
- 15. Notation CHAPTER 3 National Income 14 W = nominal wage R = nominal rental rate P
- 16. How factor prices are determined CHAPTER 3 National Income 15 Factor prices are determined by supply
- 17. Demand for labor CHAPTER 3 National Income 16 Assume markets are competitive: each firm takes W,
- 18. Marginal product of labor (MPL ) CHAPTER 3 National Income 17 Definition: The extra output the
- 19. NOW YOU TRY Compute & graph MPL 18 Determine MPL at each value of L. Graph
- 20. ANSWERS Compute & graph MPL 19 MPL (units of output) Marginal Product of Labor 12 10
- 21. Y output MPL and the production function CHAPTER 3 National Income 20 L labor F (K
- 22. Diminishing marginal returns CHAPTER 3 National Income 21 As one input is increased (holding other inputs
- 23. NOW YOU TRY Identifying diminishing returns 22 Which of these production functions have diminishing marginal returns
- 24. ANSWERS Identifying diminishing returns 23 a) F (K,L) = 2K + 15L No, MPL = 15
- 25. 24
- 26. worker adds MPL = 4 units of output 25
- 27. MPL and the demand for labor CHAPTER 3 National Income 26 Each firm hires labor up
- 28. The equilibrium real wage CHAPTER 3 National Income 27 The real wage adjusts to equate labor
- 29. Determining the rental rate CHAPTER 3 National Income 28 We have just seen that MPL =
- 30. The equilibrium real rental rate CHAPTER 3 National Income 29 The real rental rate adjusts to
- 31. The neoclassical theory of distribution CHAPTER 3 National Income 30 States that each factor input is
- 32. How income is distributed to L and K CHAPTER 3 National Income 31 Total labor income
- 33. How income is distributed to L and K CHAPTER 3 National Income 32
- 34. How income is distributed to L and K CHAPTER 3 National Income 33
- 35. How income is distributed to L and K CHAPTER 3 National Income 34
- 36. 0.1 0 0.2 0.3 0.4 0.7 0.6 0.5 0.8 0.9 1 1960 1965 1970 1975 1980
- 37. The Cobb-Douglas production function has constant factor shares: CHAPTER 3 National Income 36 The Cobb-Douglas production
- 38. The Cobb-Douglas production function CHAPTER 3 National Income 37 Each factor’s marginal product is proportional to
- 39. Labor productivity and wages CHAPTER 3 National Income 38 Theory: wages depend on labor productivity U.S.
- 40. The growing gap between rich & poor 0.30 0.45 0.50 0.40 Gini coefficient 0.35 Inequality has
- 41. Explanations for rising inequality CHAPTER 3 National Income 40 Rise in capital’s share of income, since
- 42. Outline of model CHAPTER 3 National Income 41 A closed economy, market-clearing model Supply side DONE
- 43. Demand for goods and services CHAPTER 3 National Income 42 Components of aggregate demand: C =
- 44. Consumption, C CHAPTER 3 National Income 43 Disposable income is total income minus total taxes: Y
- 45. The consumption function CHAPTER 3 National Income 44 C Y – T C (Y –T )
- 46. Investment, I CHAPTER 3 National Income 45 The investment function is I = I (r )
- 47. The investment function CHAPTER 3 National Income 46 r I (r ) I Spending on investment
- 48. Government spending, G CHAPTER 3 National Income 47 G = govt spending on goods and services
- 49. The market for goods & services CHAPTER 3 National Income 48 Aggregate demand: Aggregate supply: Equilibrium:
- 50. The loanable funds market CHAPTER 3 National Income 49 A simple supply–demand model of the financial
- 51. Demand for funds: investment CHAPTER 3 National Income 50 The demand for loanable funds . .
- 52. Loanable funds demand curve CHAPTER 3 National Income 51 r I (r ) I The investment
- 53. Supply of funds: saving CHAPTER 3 National Income 52 The supply of loanable funds comes from
- 54. Types of saving CHAPTER 3 National Income 53 Private saving Public saving = (Y – T
- 55. Notation: Δ = change in a variable CHAPTER 3 National Income 54 For any variable X,
- 56. NOW YOU TRY Calculate the change in saving 55 Suppose MPC = 0.8 and MPL =
- 57. ANSWERS Calculate the change in saving 56 ΔS = ΔY− ΔC−Δ G = Δ Y −
- 58. 57 CHAPTER 3 National Income Budget surpluses and deficits If T > G, budget surplus If
- 59. 1940-2016 Percent of GDP 10 5 0 -5 -10 -15 -20 -25 -30 -35 1940 1950
- 60. U.S. federal government debt, 1940-2016 Percent of GDP 140 120 100 80 60 40 20 0
- 61. Loanable funds supply curve CHAPTER 3 National Income 60 r S, I S =Y − C
- 62. Loanable funds market equilibrium CHAPTER 3 National Income 61 r S, I I (r ) S
- 63. The special role of r CHAPTER 3 National Income 62 r adjusts to equilibrate the goods
- 64. Digression: mastering models CHAPTER 3 National Income 63 To master a model, be sure to know:
- 65. Mastering the loanable funds model CHAPTER 3 National Income 64 Things that shift the saving curve:
- 66. CASE STUDY: The Reagan Deficits CHAPTER 3 National Income 65 Reagan policies during early 1980s: increases
- 67. CASE STUDY: The Reagan Deficits CHAPTER 3 National Income 66 r S, I S 1 I
- 68. Are the data consistent with these results? CHAPTER 3 National Income 67 T–G, S, and I
- 69. NOW YOU TRY 68 Draw the diagram for the loanable funds model. Suppose the tax laws
- 70. Mastering the loanable funds model CHAPTER 3 National Income 69 (continued) Things that shift the investment
- 71. An increase in investment demand CHAPTER 3 National Income 79 An increase in desired investment… r
- 72. Saving and the interest rate CHAPTER 3 National Income 71 Why might saving depend on r
- 73. An increase in investment demand when saving depends on r CHAPTER 3 National Income 72 r
- 74. C H A P T E R S U M M A R Y Total output
- 75. C H A P T E R S U M M A R Y A closed
- 77. Скачать презентацию