In an economy in which government expenditure is $100 billion, exports are $60 billion
prince2014.slgIn an economy in which government expenditure is $100 billion, exports are $60 billion, imports are 15 percent of real GDP, autonomous consumption is $250 billion, investment is $350 billion, and the marginal propensity to consume is 0.75.
a) Draw the aggregate expenditure (AE) curve and indicate the equilibrium value.
b) What are the slope and the vertical intercept of the AE curve?
c) What is the multiplier?
d) If investment rises to $450 billion, what will be the new equilibrium real GDP?
e) What is the impact on balance of trade in question (d)?
- 10 years ago
- 10
Answer(2)
Purchase the answer to view it
NOT RATED
- in_an_economy.docx
Purchase the answer to view it
NOT RATED
- answer.pdf
Bids(0)
other Questions(10)
- who killed abraham lincoln?
- What are City-States?
- A) Think of a service you paid for recently.What would you have to go through to be able to perform...
- Who is Antigone?
- how can you make an earthquake proof building
- organizational characteristics of MNCs
- describe government operation
- In a round of golf ,the lowest score win .At the end of a round ,you have score -3 and...
- What object is 87 cm? What about 3cm,1m,31cm,1.5 cm, 65 mm,240mm,28cm,and 2 cm.
- Final Assignment