ABSTRACT
The greater part of this book has been concerned with comparative static analysis. In other words the equilibrium values of the endogenous variables, corresponding to one set of exogenous variables have been compared with the equilibrium values of these endogenous variables, corresponding to another set of exogenous variables. In particular, we have discussed how the equilibrium values of endogenous variables, such as the price level and real income of a system, are changed by changes in exogenous policy variables, such as government expenditure, taxation and the money supply. The problems of whether the new equilibrium will ever be reached, the time involved in reaching it, and the path of adjustment to it have not been discussed.
