Thursday, November 4, 2010

With "Equilibrium" point

1.Demand and supply equilibrum is define as Qd=Qs, ie equilibrum is the point of intersection of dd and ss on the curve.
2.At point E where demand and supply curve intersect each other that point is equilibrium point Qd=Qs.

It is an Edgeworth Box. No doubt!

1.An Edgeworth Box showing indifference curves and possible gains from trade. Blue indifference curves show my preferences; red ones show yours. The entire shaded area is preferred to A by both of us; the colored area is preferred to B by both of us. Once we reach point E, no further trade can benefit both of us. 

2. E adalah keseimbangan atau  keselarasan dengan bertemu faktor2 ekonomi makro yang terdistribusi ke ekonomi mikro.

Keynesian cross. Makes me tear up.

1. The goals of Keynesian economics is to bring the economy back into long run equilibrium with potential output.

2. A desired total spending (or aggregate expenditure, or "aggregate demand") curve is drawn as a rising line since consumers will have a larger demand with a rise in disposable income, which increases with total national output. This increase... is due to the positive relationship between consumption and consumers' disposable income in the consumption function. Aggregate demand may also rise due to increases in investment (due to the accelerator effect), while this rise is reduced if imports and tax revenues rise with income. Equilibrium in this diagram occurs where total demand, AD, equals the total amount of national output, Y, (which corresponds to total national income or production). Total demand equals total supply.

IS - LM Curve

IS this the MUNDELL-FLEMING PERFECT CAPITAL MOBILITY,UNDER FIXED-FLEXIBLE EXCHANGE RATE Where supply of money is relatively inealtic (i.e LM) & IS CURVE SHIFTS UPWARDS TO THE RIGHT? :DD