Junior Lecturer in Economics, Kemmy Business School, University of Limerick, Ireland.
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EC6012 Lecture 4: The Simplest Model with Government Money

EC6012 Lecture 4: The Simplest Model with Government Money

Today:

1. Finish off Conventional National Income and Expenditure Matrix

2. Problem: Calculation of GDP GL, (pg. 34–36)

3. Another accounting problem using the circular flow.

4. The Simplest Model with Government Money (GL, pgs 57–71 & Simulations using Eviews)

5. Problem: Interpretation of “steady states” and “shocks” in the light of SIM1.

Before the lecture:

Web Stuff to look at in revision, from Brad Delong’s excellent blog.

Steady State

The Circular Flow

Flows in the circular flow

The multiplier

Book Read Godley and Lavoie pgs 32–71.

1 comment

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