s(y) represents the savings function, which refers to the dependence between savings and various factors that determine the size of savings. There are many factors that affect savings. But income is the most important factor, so the savings function mainly reflects the dependence between income and savings. Generally speaking, when other conditions remain unchanged, savings change in the same direction as income changes, that is, income increases. Savings increase, income decreases, and savings decrease.
S = f(Y) Because: Y = C + S S = Y _ C C = a + bY So: S = _ a + (1 _ b)Y
: Macroscopic The central theory of economics?
1. Macroeconomics belongs to the paradigm of Western economics. Since the research of macroeconomics and microeconomics are separated, the relationship between macroeconomics and scientific general economics is neither overall nor partial, nor general nor special. Therefore, it is impossible to study the general laws of economic development and the special laws of macroeconomics and describe economic phenomena at the macro level only from a phenomenological perspective.
2. Macroeconomics takes the activities in the general process of the national economy as the research object, and mainly examines economic aggregates such as total employment level and gross national income. Therefore, macroeconomics is also known as employment theory or income theory.
3. Macroeconomics studies the utilization of economic resources, including national income determination theory, employment theory, inflation theory, business cycle theory, economic growth theory, fiscal and monetary policy. Macroeconomics includes macroeconomic theory, macroeconomic policy and macroeconomic econometric models.
What are the indicators that affect the macroeconomy?
1. Macroeconomic indicators: To evaluate the macroeconomic indicators of a country or region, we must first analyze the main macroeconomic indicators of the country or region. These indicator variables include:
① Gross domestic product.
②Inflation. The measurement of inflation mainly uses price indexes, such as consumer price index, producer price index, and commodity price index.
③Interest rate, interest rate is the main determinant of capital cost. High interest rate will reduce the present value of future cash flows, thus reducing the attractiveness of investment opportunities.
④Exchange rate. The exchange rate directly affects the competitiveness of domestic products in the international market, thereby having a certain impact on the country's economic growth.
⑤ Budget deficit.
⑥Unemployment rate.
⑦ Purchasing Managers Index.
2. Economic cycle: The economic cycle divides macroeconomic operations into expansion and contraction periods based on the actual total domestic market value. The economic cycle includes periods of economic expansion and periods of economic contraction.