ch4part ii a one-period model of the macroeconomy(中级宏观经济学,香港中文大学).pptVIP

Part II A One-Period Model of the Macroeconomy Static vs Dynamic decision making Static decision making involves planning over a single period. (Chapter 4 5) Dynamic decision making involves planning over more than one period. (Chapter 6, 7, 8 9) Chapter 4 first describes the micro behavior of a representative consumer and a representative firm. Chapter 5 then assembles these in a macro model in order to address some important macro issues. Assumptions on the environment : There are only two goods that consumers desire. Consumption good, which is an aggregation of all consumer goods