Theory-Based Models
Theory-Based Models
Models
Browse compact macro models for mechanism-first explanation, then move into overview, exploration, proof, and compare routes once you have a scenario worth revisiting.
Topic
Difficulty
Simultaneous equilibrium in the goods market and money market, tracing how spending and liquidity conditions jointly pin down output and the interest rate.
How do demand and liquidity conditions settle at one macro equilibrium?
A short-run demand and supply framework showing how price level and output move when demand or cost conditions shift around long-run capacity.
What happens to output and prices when demand or supply shifts around capacity?
A long-run growth framework linking saving, depreciation, population growth, and productivity to the steady-state capital stock and output path.
How do saving and break-even forces shape long-run capital and output?
A reduced-form inflation-unemployment relationship used to study slack, inflation expectations, and supply disturbances.
How does labor-market slack translate into inflation pressure?
A policy rule linking the nominal interest rate to inflation and output gaps, giving a compact view of monetary reaction functions.
How aggressively should the policy rate react to inflation and output gaps?
An open-economy extension of IS-LM adding the external balance condition to study fiscal policy, monetary policy, and capital mobility.
How does open-economy balance change the usual IS-LM policy story?
A stripped-down real business cycle setup linking productivity, capital accumulation, and intertemporal return conditions.
How does a productivity-driven real economy adjust through capital and consumption?
A two-period overlapping-generations framework linking saving, population growth, and capital accumulation across cohorts.
How do saving choices and demographics change capital accumulation across generations?