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• 0 pl.T' ec.onom:i '( =: E- = (o.. + b Y ) + I + G + X - Cu + v-'f ) ➔ ~ - .1. "- C.<-'-+l-t6+X-u )

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• t Lt'\ U..n u-. Et.uope .sr.nce: n91d lo..POlLr mo.rktt , ~ioni2a.hon, h~~ti:'.'.risi:S

• Loll\l Uf\UY1f. rn U.S : labour rna.rkd~ fleicib1Ld:¼-, fcwourabl" h'id-t ri~t~

NnN Classr'c.al tc.onoMic.s

• A5'su.rn e : v-R"E • ~c..onom is bs' : Lucas 1 ~ar9U1t, Wa. I\ oc.e

L Lock of po-fed- V)fo
~ 'Fie x,.blr pnC.t"i , 11\Jag ts

• G,sl J RE i's u~~ h, pYl)Vlde thr t)~l-\) . cla~5'ical polrc..y L()(.fflc.hvt.ne~ p ro pOS-ITTbr) :
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F
0 "·•
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'It == Shi~ Ly:,wosds . As c;LUYt ~ ! N :.
Zic F ( Kt I N,t- ) N., N
G-ncl't +ha.l IZ ~O.\/~s ~ hig hu so..vU19
Ye= cl-+ St ➔ hrghu hic3her I< LO Nx-t- ~umd ~ h rghe.r
I~
'( i.n ntxt pe.rr.od ~ (.1::-fl< ci ii fa'tt'. V ·?&'.,1 , _.. 1.
k Ht = St + ( I- S) Kt VJ.) , ...~ u 1 lJ ..t v ,c \ · " er f t
N\rldho- ~hock ·,s ptrma.rie...n~ or not 9 pH,;:i.st-e..,,-Hy_ h,gh
o • e.eo • q_c..t£ v Lh..j .
1'-(COYY'tlY)e.ndo..-ho() r>on Ln'\--erve__nl-i on,s I:
4\~l..L,.r()~
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~e..nts e.p\- .
L FP : ca.us~~ d.1 .s +orhons . \ndcad Oj lo..~ , use. netA.I rnonf..'I 1--c, -;tJ'MC~
6 .
- ma., la. t-dL.at-t:

U,..n e_ I ,\ I' .· V c,.. I t I r{ ,.... ' I

Maf\Kl~ RbtYll' r
New Kt ynrs IM Ee.on om ics 1

I . ~l:ick y p nc e. C. VY1UUt cost) rnod~l

-- ✓/ _,
~ Pe.r fe cl- c.v m f> .IJJ
A~~l.t.JY\e. ~ Dno pDI rd1c' c..om r) -z, I 19bfOl1s+iC: Fi-m
pufecJ-- wmp .
proclucf- ma,. ket . l'Ylt..n.u cos!:- - l'Ylct..no.~ena.l cost--
- IO H Of c.o (') $ l.U'Yl tr 300d u.iUl
rYton~~ 1/\1~'-l~ + product - potu.+ta.( ~nc·e war .
_rnu. ngu-3. •
: eo~l of A tr) pv-ices ,.~e mt.YLL.l cost.s
i rnp \i co. h.tH)
~e.a I rt g i clrf-y tn RV\.\ p1-tvuit- A pnce. Nntn A(.¥) de...ma..nd. Ht.nee:
-l, dUYIQ.ftd -9" J <l..Ll tp u.t .

M ode( ""t~• ••
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r

Policy : v
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n · r,
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t pe =~orc:i__l~ol<w:1

offse.H(n.9 ,t, /\D mo ~(' 1.mp . iho.,n t J.\ b

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ca.n coc~ ( ).._,
a qfo._lod(-ztr19 MO..,n111.-1.
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NO<:)~
cue pa.td , RV\' i ~ se+ +o mcudrvt1'2e. _ ~ff1ciLt1C.l:J Uflih of L_ per $ o.f ex" pQ.,nclt...b.ne .,
net +v dtC\ , --lh(. L mcnkd .

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le "t.l s U'\ c ~
t.ricw-hvr for w or ke., s
~ q,ut t ,cd- ~
+o nd ~h ,·r k

=? p~ r;,i tt.1'\'t , tn'\/o Iu. .rrtClry tl • Gift- e. xc. ha.n 9 e rn Dd e L

-.!, I\O ~ ( f,x(d p -: rv,U1-u c»d: 1 ~ f1 xe.ci '-'.l ~ Lf)\/ ol u.nta ~ u .

Fr'X(d w •.' effiuwc.y N~C. j r

3 . \n~rdrY Du.t sr'dtr modt( /H::,skr',~ ·Ls~ Rrce~~1on ==?t.f\<;1decs becom~ ou~tcks =9
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. r ' -.· pt.f'\ S e ·ti_- A f\ I") •

~ ~ ra.mwts b/ w