1
Q
Y =
A
Output or income
2
Q
K =
A
Capital
3
Q
L =
A
Labor
4
Q
F(K,L)=
A
The Production Function
5
Q
A =
A
Total Factor Productivity (partly technology, partly institutions, partly…we don’t know)
6
Q
y =
A
=Y/L=output per worker
7
Q
k =
A
=K/L=capital per worker
8
Q
MPK =
A
Marginal Product of Capital
9
Q
MPL =
A
Marginal Product of Labor
10
Q
P =
A
the average price level of output
11
Q
R =
A
The Rental Price of Capital (i.e., the marginal factor cost of capital)
12
Q
W =
A
The Wage Rate (i.e., the marginal factor cost of labor)
13
Q
π =
A
(nominal) economic profit
14
Q
Π =
A
=π/P=real economic profit
15
Q
rc =
A
the real rental rate of capital (not the same as r, the real interest rate)
16
Q
w =
A
the real wage rate
17
Q
T =
A
Taxes
18
Q
S =
A
National Saving
19
Q
G =
A
Government Spending
20
Q
C =
A
Consumption
21
Q
I =
A
Investment
22
Q
NX =
A
Net Exports
Economics
flashcards
Decks in class (16)
# Cards
-
2023 Test 167
-
2023 Test 264
-
2023 Test 354
-
2023 Final Cumulative136
-
2013 Midterm110
-
2013 Final121
-
3203 Unit 1 Intro57
-
Economics of Financial Markets Unit 1128
-
3203 Model Letters22
-
3203 Unit 1 Study guide36
-
Economics of Financial Markets Unit 235
-
Int Macro Final29
-
10443
-
3101 Int Micro120
-
3101 pt 244
-
Asian Eco89
