Fiscal policy and Foreign trade

宏观经济思维导图 第三课思维导图，主要分为Introduction of the gov.sector和Introduction of the foreign sector两部分内容。

Fiscal policy and Foreign trade

• Introduction of the gov. sector
  • some key terms
    • Budget deficit 预算赤字BD=G-NT
    • Fiscal policy
    • stabilization policy
    • national debt
  • Functions
    • AD=C+I+G
    • C=A+cYd(disposable income)
    • Yd=Y+benifits-taxes=Y-NT
    • NT=tY
    • Yd=Y-NT=(1-t)Y
    • C=A+cYd=A+c(1-t)Y
      • MPC out of income<MPC out of disp. income
    • 之前AD=A+I+cY
    • 现在AD=A+I+G+c(1-t)
  • Taxes
    • direct tax(inc. tax…)假设all是
      • lump-sum tax T=To
        • Y = A + c(Y – T0) + I + G
        • Y* =1/1-c [A – cT0 + I + G]
      • proportional income tax T=tY
        • Y = A + c(1–t)Y + I + G
        • Y* = 1/c(1-t)[A + I]
    • indirect tax (VAT…)
  • Gov. budget BD=G-NT=G-tY
    • the effect of G on the budget deficit
    • the effect of t on the budget deficit
  • deficit and fiscal stance
    • expansionary contractionary
    • structural budget
    • inflation-adjusted budget
      • use real interest rates
      • real cost of borrowing=nomial interest rate-inflation
  • automatic stabilizers 自动稳定器
  • discretonary fiscal policy
    • limits
      • time lags
      • uncertainty
      • induced effects on autonomous demand
      • the budget deficit
      • w r at full employment
  • the national debt and the deficit
    • r 名义利率 pi通胀率g经济增长率
    • （r-pi-g)D/pY r>pi+g才会给国家带来压力
• Introduction of the foreign sector
  • some key terms
    • X export
    • Z import
    • NX=X-Z tade balance
    • trade deficit X>Z
    • trade surplus
  • Functions
    • Z=zY z:Marginal propensity to import(MPZ)
    • AD=C+I+G+X-Z
    • Y = AD = C + I + G + X – Z
    • T=tY
    • C = A + cYd = A + c(Y – T) = A + c(1–t)Y
    • Y = A + I + G + X (d'nt depend on Y)+ [c(1–t) – z]Y
    • Y*=1/1-c(1-t)+z [A+I+G+X]
  • high export demand
    • I+G+X=S+NT+Z X增加 S NT Z都增加 X>Z
    • Net export demand 增加 净出口增加
  • import and employment
    • 短期减少Z可以增加国内output
    • 长期会遭报复 X下降，结果world trade disappear