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Suppose in period t − 1 the system is in equilibrium, i.e. =. Suppose that in the period t, disposable income Y t {\displaystyle Y_{t}} increases by 10 and then returns to its previous level. Then C t {\displaystyle C_{t}} first (in period t) increases by 5 (half of 10), but after the second period C t {\displaystyle C_{t}} begins to decrease ...
Starting from one point on the aggregate demand curve, at a particular price level and a quantity of aggregate demand implied by the IS–LM model for that price level, if one considers a higher potential price level, in the IS–LM model the real money supply M/P will be lower and hence the LM curve will be shifted higher, leading to lower ...
Where is the height of the level of free convection and is the height of the equilibrium level (neutral buoyancy), where , is the virtual temperature of the specific parcel, where , is the virtual temperature of the environment (note that temperatures must be in the Kelvin scale), and where is the acceleration due to gravity. This integral is ...
Computable general equilibrium (CGE) models are a class of economic models that use actual economic data to estimate how an economy might react to changes in policy, technology or other external factors. CGE models are also referred to as AGE (applied general equilibrium) models. A CGE model consists of equations describing model variables and ...
To alleviate this problem, free energy prediction models, such as UNIFAC, are employed to predict the system's energy based on a few previously measured constants. It is possible to calculate some of these parameters using ab initio methods like COSMO-RS, but results should be treated with caution, because ab initio predictions can be off ...
A macroeconomic model is an analytical tool designed to describe the operation of the problems of economy of a country or a region. These models are usually designed to examine the comparative statics and dynamics of aggregate quantities such as the total amount of goods and services produced, total income earned, the level of employment of productive resources, and the level of prices.