Basic symbols used in ECON 3240 (also useful for ECON 4290)

Prof. Xavier de Vanssay *********************************************************************** * Y Yw Yr Yi Yr Yd y Yd Y* YFE C I G x M T S K Kc Ig = Real National Income/Real NDP (or Real NNP) = Income from wages, salaries. = Income from rentals and royalties = Interest Income = Income from retained business profit = Income from distributed business profit ( = dividend) = Nominal National Income/Nominal GDP (or NNP) = Disposable Income = Equilibrium level of output = Level of output at full employment (FE) = Consumption = Net (Fixed) Investment = Government spending = Exports = Imports = Net Tax revenues (= Taxes - Transfers) = Private (Households) Savings = Capital stock. = Depreciation of Capital Stock = Gross Investment

 I dX

= [pronounce small delta] Depreciation rate . 3% is a normal value. = Ig - Kc = X = change in X (where X is a variable)

dX/dt = change in X due to change in time (where change is new old) = [pronounce X bar], when X (= a variable) is parametric, when x is exogenous. X Attention: Do not confuse this notation, used in my economic theory courses, with the one used in statistics, econometrics or forecasting courses, where X means the sample mean of X. X (pronounce X hat) = dlnX= dX/X = percentage change in X. (where X is a variable) Attention: Do not confuse this notation, used in my economic theory courses, with the one used in statistics, econometrics or forecasting courses, where X means the estimated value for X. P L = [When talking about price indices] is the Paasche index. = [When talking about price indices] is the Laspeyres index.

F = [When talking about price indices] is the Fisher index. (used by Statistics Canada: F= L.P ) a b APC APS MPS Sd Sa Id Ia IS LM = Autonomous component of the consumption function = Marginal Propensity to Consume (MPC) = Average Propensity to Consume = Average Propensity to Save = Marginal Propensity to Save = ex-ante savings (also known as desired savings) = ex-post savings (also known as actual savings) = ex-ante investment (also known as desired investment) = ex-post investment (also known as actual investment) = Investment/Savings (part of IS/LM Model) = Liquidity Market (part of IS/LM Model) 2

AS AD t h ATR r i id

= Aggregate Supply (part of AS/AD Model) = Aggregate Demand (part of AS/AD Model) = marginal tax rate = Autonomous component of the tax function = average tax rate = real interest rate = nominal interest rate (prime rate) = nominal discount rate

MEC = Marginal Efficiency of Capital J J CSR CLR L = level of inventories = changes in inventories = Short-run consumption function = Long-run consumption function = [pronounce small lambda], the Lagrange multiplier = the Lagrangian

MUC0 = Marginal Utility of C0 E(X) RRr DC FX DD CC H = Expected value of X, where X is a variable. = Required Reserve Ratio = Direct Claims = Foreign Exchange Reserves = Demand Deposits = Currency in Circulation = High Powered Money = Monetary Base

Ms Md Cr Rr XRr mm P T

= Nominal Money Supply = Nominal money Demand = Currency Ratio = Reserve Ratio = Excess Reserves Ratio = money multiplier = average price per transaction = number of transactions

M = nominal quantity of money in circulation (e.g. M1) Vt ms md Vc k PV0 PV1 ic in = Transaction velocity of Money = Real Money Supply = Real money Demand = Income velocity of circulation = a constant = present value at t=t0 = present value at t=t1 = [pronounce capital GAMMA], capital loss/gain on consol.] = [pronounce small GAMMA], % capital loss/gain on consol.] = critical interest rate = natural (long term) interest rate

E(W) = Expected Wealth 2 = [pronounce small SIGMA], standard deviation = variance

 W w L H TPL

= [pronounce capital OMEGA], percentage of total wealth in non-human form = nominal wage rate = real wage rate = (here) leisure = number of hours worked = Total Labor Productivity

MPPL = Marginal Physical Productivity of Labour X SN DN = Number of workers = Labour Supply = Demand for labour.

(Last updated: September 2008)