ANALYSIS OF THE INFLUENCE OF MACROECONOMIC VARIABLES ON THE REAL SECTOR

The analysis of the effects generated by the various macroeconomic variables upon the real sector in Romania is accomplished by means of the IS-LM model for a small, open economy, as is the case of our country. The paper aims at identifying the factors influencing the evolution of the real sector in Romania in the period 1990-2006. The IS-LM model or the Keynesian total model comprises the aggregate sizes of an economy. In these cases, the equilibriums in the product market (the IS curve) and the equilibriums in the money market (the LM curve) are decisive. According to Keynes, economy is permanently heading towards a point of equilibrium (the economic inner equilibrium). Nevertheless, because of constant changes, this point will never be attained