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Markets and the Macroeconomy II
Stephen Kinsella
stephenkinsella.net
Today

• Recap
• Equilibrium in the Markets
• Consumption, Saving, and Investment
The Macroeconomy
is the sum of Supply
   and Demand in
 Individual Markets
Household Behaviour
Consumption
Saving
Firm Behaviour
Equilibrium
Demonstration
The market clearing approach assumes that:
a. people are able to affect prices that influence their
decisions.
b. firms are able to affect prices that influence their
decisions.
c. prices adjust to clear markets.
d. all of the above.




             Text to 086 399 83 06
EC4004 2008  Lecture5 Markets and the Macroeconomy II
EC4004 2008  Lecture5 Markets and the Macroeconomy II
EC4004 2008  Lecture5 Markets and the Macroeconomy II
EC4004 2008  Lecture5 Markets and the Macroeconomy II

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EC4004 2008 Lecture5 Markets and the Macroeconomy II