Keynesian Model, Money Supply, Production, and External Sector

Posted on Jan 25, 2025 in Chemistry

Keynesian Model

Real or Aggregate Demand (DA)

  • y = c + z
  • c = a + by
  • z = go + g1i
  • y = (a + go + g1i) / (1 – b) = y = f(i)

Money Supply (S. Moneta)

  • Md = L(l, y)
  • Ms = (1/p) * h(i)
  • L(l, y) = (1/p) * h(i)

Production (S. Producc)

  • y = F(N)
  • Pman = W
  • Yo = F(No)
  • Ns = f(w)

External Sector Model (S. Exterior)

  • Y = C + I + G + X – M
  • y = Co + bY + Io + Go + Xo – Mo + My
  • y(1 – b – m) = Co + Io + Go + Xo – Mo
  • y = (Co + Io + Go + Xo – Mo) / (1 – b – m)