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Results tagged with macroeconomics
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user 16356
Macroeconomics is a branch of economics dealing with the aggregate economy as a whole, rather than individual markets.
4
votes
How to get the percentage-change form of the quantity equation?
I think the author is just taking logs of the original equation. The natural log approximates percent changes for small changes. More info here. Using that and properties of the log, $\ln(ab)=\ln(a …
- 453
1
vote
asset-pricing problem
The agent doesn't always prefer consumption profiles that are more smooth. It depends on the curvature of $u$ and the maginitude of $\beta$. Consider the following example.
Let $u(c) = c^{1/2}$. Th …
- 453
5
votes
Intuition Behind the Definition of Prudence?
From the Wikipedia article:
Economists describe a consumer as "prudent" if he or she saves more when faced with riskier future income. This additional saving is called precautionary saving.
For …
- 453