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Textbook Macroeconomics


The overall economy is the subject of macroeconomics. Introductory texts use the equations given in the figure to describe the main features of an economy. Saving is proportional to income; income is the sum of the income money saved and that spent in consumption; savings goes into investment and is equal to it.


  • The macroeconomic models are often applied to nations, states and regions. The provisions for source control added to these minimodels make the macroeconomics equations dynamic and realistic.
  • Diagram


    K = storage of capital assets
    Y = income


    Y = C + S
    PR = K4*E*C*K
    DK = K3*I - K6*E*C*K - K2*k
    R = J/(1 + K0*C*S)
    S = K5*Y


    The graph shows the changes of K(red) and Y(blue) over a time period.
    Source code:

    "What if" Experiments:

  • What is the effect of an increase in depreciation rate of growing assets? Double K2.
  • What is the effect of increasing the percent of the income saved and reinvested? Increase K5.
  • What is the effect of increasing the availabilitity of energy in the exponential case in figure I? Increase I.