In this paper, we first study the static equilibrium of a a closed economy model in terms of dependence on national income and interest rate from the main factors namely the marginal propensity to consume, tax rate, investment rate and the rate of currency demand. In the second part, we study...

In this paper, we first study the static equilibrium of a a closed economy model in terms of dependence on national income and interest rate from the main factors namely the marginal propensity to consume, tax rate, investment rate and the rate of currency demand. In the second part, we study...

The paper treats the debt burden in Romanian economy. The rigidity of the structure of public spending has not allowed rapid adjustment to respond to massive reduction of production and income, reflected in excessive budget deficits and public debt doubled in a few years. The paper concludes...

In this paper, we will continue the study of the dynamic equilibrium solutions in the purpose of investigating the dependence limits (potential output and interest rate limit). We find also an interesting linear relation between the potential output and interest rate limit.