By equilibrium incomes one understands the national income and/or the national product Y, with which the associated demand is equal to this national product.

Case keynesianische models

If one subordinates a keynesianisches model, then a certain production Y leads to an income Y, which releases again a consumer demand C. This consumer demand can lead however altogether to a demand, which is larger or smaller than production/the income Y. The equilibrium income can be determined, with which production and incomes on the side are equal to the demand on the other side, released thereby.

In a closed national economy, thus without foreign trade, applies:

(1) Y = C_0 + C + I + A_ {St}

The total demand Y consists of the consumer, to the investment demand and the public expenditures, the demand of the state.

Proportionally to the income Y taxes T are raised:

                       T = t \ Y cdot 

To the keynesianische consumer demand C applies:

                      C = C_0 + C \ cdot (Y-T) 

In equation (1) thus however Y stands as size also on the left of Y, right occurs. How largely does the equilibrium income have to be that the equals sign applies in

The equilibrium income Y* is the product of multiplicator and the sum of the income-independent demand sizes (autonomous demand):

Y^* = \ frac {1} {1-c+ct} (C_0 + I + A_ {St})

C_0: more income-independently (more autonomously) private consumption A_ {St}: Demand for goods by the State of I: Investments of the Unternehmert: Control item C: marginal note consumer ratio

One demands that the public expenditures are to be financed fully by taxes

A_ {St} =T,

so that by it also the public expenditures dependent on the income Y (A_ {St} = T = t \ cdot Y)), then applies:

Y^* = \ frac {1} {1-c+ct-t} (C_0 + I)

This keynesianische model can be refined (nonlinear consumer function, external trade). In addition also neoclassical acceptance over the investment or consumer behaviour can be naturally met with according to other equilibrium solutions for the national product Y instead of keynesianischer acceptance.

See also: Economic circulation

Articles in category "Equilibrium income"

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