中级宏观经济管理学与财务知识分析规范(ppt 30页)
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中级宏观经济管理学与财务知识分析规范(ppt 30页)简介：
The economy that we consider is a closed economy, i.e. one that does not trade with other economies.
Besides representative consumer and representative firm, there is an additional agent: the government.
Government
The only action of the government is to implement fiscal policy. Fiscal policy refers to the government’s choices over its expenditures, taxes, transfers and borrowing.
Suppose the government wishes to purchase a given quantity of consumption good, G.
Since there is only one period, the government cannot borrow to finance G. Thus G is paid by taxing the representative consumer.
The government must observe the balanced budget constraint,
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