MACRO MODELS

Macro Models

Macro Models

The multiplier model explains how to determine the short-term production. The term “multiplicador” is that each variation experienced by exogenous expenditures such as investment in a euro causes a change in GDP of more than one euro, that is, a variation multiplied. The Keynesian multiplier model offers a justification of why economy to shocks that affect investment, net exports and tax policy and public spending can influence output and employment. The basic assumptions of the multiplier model are that prices and wages are fixed and resources are unemployed.

Unique equilibrium in the goods market of an ...