巴罗 宏观经济学 ppt 章节6

consumption. to increase the stock of goods in the form of capital used for production, called investment.
Macroeconomics Chapter 6
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The Goods Market and Prices
Macroeconomics Chapter 6 17
Constructing the Budget Constraint
Income
Profits
Households may earn profit—an excess of revenue over costs—from their business activities. Y= A· F( Kd, Ld ) π = PY − (wLd+ RKd) π = P A· F( Kd, Ld ) − ( wLd+ RKd)
Macroeconomics Chapter 6
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The goods Market and Prices
The expression 1/P is the value of $1 in terms of the goods that it buys. M dollars exchange for
(M) · (1/ P) = M/P An expression like M/P is in real terms, in units of goods, whereas a quantity like M is in dollar or nominal terms.
The variable i is the interest rate, which is the ratio of the interest payment, $i, to the principal $1. The interest rate, i, can vary over time.
Macroeconomics Chapter 6
Money is denominated in an arbitrary unit, such as a “dollar.” Dollar amounts are in nominal terms. Paper money earns no interest.
Macroeconomics Chapter 6
Macroeconomics Chapter 6
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Rental Markets in the Macroeconomy
Each household rents out all of the capital that it owns on a rental market.
We think of the capital offered on the rental market as the supply of capital services, Ks. Since we have assumed that each household rents out all of its capital, Chapter 6
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Constructing the Budget Constraint
Income
Wage income
If households supply the quantity of labor Ls to the labor market, they receive the nominal wage income of wLs per year. Quantity of labor supplied is the fixed amount L, so nominal wage income is wL.
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The goods Market and Prices
Y= A· F( K, L)
Since all of these goods are sold on the goods market, the variable Y will also represent the Quantity of goods per year sold and bought on the goods market. The quantity PY is the dollar value per year of the goods bought and sold on the goods market.
Macroeconomics Chapter 6
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Constructing the Budget Constraint
The quantities and prices determined on the four markets will determine household income.
Macroeconomics Chapter 6 11
The bond Market and Prices
Each unit of bonds commits the borrower to repay $1 to the holder of the bond. This $1 is the principal of each bond.
A household that makes a loan receives a piece of paper called a bond, and we call the market on which households borrow or lend the bond market. The holder of a bond, the lender, has a claim to the amount owed by the borrower.
Chapter 6
Markets, Prices, Supply, and Demand
Macroeconomics Chapter 6
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Markets in the Macroeconomy
Assuming that households perform all of the functions in the economy.
The principal is the initial amount advanced on a loan.
Macroeconomics Chapter 6
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The Bond Markets and Prices
Each unit of bonds commits the borrower to pay the holder a flow of interest payments of $i per year.
Macroeconomics Chapter 6
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Money as a Medium of Exchange
Assume that money is just a piece of paper, analogous to a paper currency issued by a government.
Each household runs a family business and uses labor, L, and capital, K, to produce goods, Y, through the production function.
Y= A· F( K, L)
Macroeconomics Chapter 6 2
Macroeconomics Chapter 6
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Labor Market in the Macroeconomy
Households supply labor on a labor market.
Assume that the quantity supplied, Ls, is a constant, L. Households buy and sell labor in the labor market at the dollar or nominal wage rate, w. The real wage rate is w/P.
Macroeconomics Chapter 6
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Rental Markets and Prices
Households rent out capital, K, for dollars at the dollar or nominal rental price, R
A household that rents the amount of capital Kd pays the nominal amount RKd per year and then gets to use the capital as an input to production.
The price in this goods market, denoted by P, expresses the number of dollars that exchange for one unit of goods. We call P the price level.
Macroeconomics Chapter 6
The real rental price is R/P.
Macroeconomics Chapter 6
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The Bond Market in the Macroeconomy
A borrowing household receives a loan from another household, whereas a lending household provides a loan to another household.
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Money as a Medium of Exchange