Aggregate Economic Choice

1. Conventional Macro Models and Aggregate Economic Choice.- An Overview of the Book.- 2. The Basic Structure.- Government Sector.- Household Sector.- Nonfinancial Business Sector.- Private Financial Sector.- Central Bank.- The Open-Economy Model.- 3. The Household Sector in the Simple Model.- Formal Model of the Household Sector.- 4. The Nonfinancial Business Sector in the Simple Model.- The Anticipated Current Revenue Function.- Next Period’s Anticipated Revenue Function.- The Business Sector’s Optimizing Problem at Time t.- First-order Necessary Conditions.- Conditions for Liquidation.- Response Functions of the Business Sector as a Going Concern.- 5. National Product and the Dynamic Properties of the Simple Model.- Derivation of Walras’ Law in a Setting without Market-Clearing.- The Discrepancy between the Business Sector’s Desired and Actual Cash Balances.- National Income and Product.- Specification of the Complete Model.- Some Implications of the Model.- The Conventional Approach to Introducing Government Activity.- 6. Government Activity and Aggregate Economic Choice.- The Government Sector.- Modifications of Household Sector Behavior.- Modifications of Business Sector Behavior.- National Product and Economic Fluctuations.- Some Implications of the Model.- 7. The Government Sector in the Expanded Model.- Formal Model of Government Activity.- 8. Household Sector Behavior in the Expanded Model.- Formal Model of Household Behavior.- First-Order Conditions.- Household Sector’s Decision Variables.- 9. The Nonfinancial Business Sector in the Expanded Model.- Formal Model of the Nonfinancial Business Sector.- 10. The Private Financial Sector.- Formal Model of the Private Financial Sector.- Implications for Private Financial Sector Behavior.- 11. The CentralBank.- Formal Model of Central Bank Behavior.- Answers to Criticisms of Profit-Maximization and a Reliance Upon Discounting.- Conclusion.- 12. The Complete Model of a Closed Economy.- Formal Specification of the Complete Model.- 13. Model of a Large Open Economy.- The Government Sector.- The Household Sector.- The Nonfinancial Business Sector.- The Private Depository Institutions.- The Complete Model of a Large Open Economy.- Impacts of Changes in Selected Foreign Parameters upon the Domestic Economy.- 14. Conclusion.