TAILIEUCHUNG - Lecture Macroeconomics: Lecture 22 - Prof. Dr.Qaisar Abbas

Lecture Macroeconomics - Lecture 22: Consumption - II. This chapter presents the following content: Franco Modigliani: the Life-Cycle Hypothesis; Milton Friedman: the Permanent Income Hypothesis; Robert Hall: the Random-Walk Hypothesis; David Laibson: the pull of instant gratification;. | Review of the previous lecture 1. Keynesian consumption theory Keynes’ conjectures MPC is between 0 and 1 APC falls as income rises current income is the main determinant of current consumption Empirical studies in household data & short time series: confirmation of Keynes’ conjectures in long time series data: APC does not fall as income rises 0 Review of the previous lecture 2. Fisher’s theory of intertemporal choice Consumer chooses current & future consumption to maximize lifetime satisfaction subject to an intertemporal budget constraint. Current consumption depends on lifetime income, not current income, provided consumer can borrow & save. 1 Lecture 22 Consumption-II Instructor: Prof. Dr. Qaisar Abbas 2 This chapter sets up the IS-LM model, which chapter 11 then uses extensively to analyze the effects of policies and economic shocks. This chapter also introduces students to the Keynesian Cross and Liquidity Preference models, which underlie the IS curve and LM curve, .

• Kinh tế học
• Lecture Macroeconomics
• Principles of microeconomics
• Economic models
• Science of macroeconomics
• Tools of microeconomics
• Microeconomic transactions
• Bài giảng Kinh tế vĩ mô
• Kinh tế vĩ mô
• Data of macroeconomics
• Unemployment rate
• Inflation rate
• Natural rate of unemployment
• Consumer price index
• National income
• Agriculture sector
• Agricultural policies
• Economic fluctuations
• Macroeconomic policy
• Business cycle theory