Is consumption depend on GDP in the cross model, Macroeconomics

Q. Is Consumption depend on GDP in the cross model?

Aggregate demand

The consumption function

Consumption C(Y) depends positively on GDP in the cross model

Remember that in classical model, consumption relies on the real interest rate. In cross model it relies on GDP. Note that it isn't possible to include r in the cross model as it is fixed. Though, we need to justify the dependence of C on Y.

Posted Date: 8/14/2013 2:41:11 AM | Location : United States

Related Discussions:- Is consumption depend on GDP in the cross model, Assignment Help, Ask Question on Is consumption depend on GDP in the cross model, Get Answer, Expert's Help, Is consumption depend on GDP in the cross model Discussions

Write discussion on Is consumption depend on GDP in the cross model
Your posts are moderated
Related Questions
draw a diagram that explains how interest rate sare determined in the keynesian macroeconomic model

What is the development process? Development is measured through outcomes that are development occurs while key indicators of human well-being enhance. A reduction of poverty

I am working on a project for my class and this week discussion is on international trade and exports. what I am needing is the information for the 1970s

The rent control agency of New York City has found that market demand is QD=100-5P With quantity measured in tens of though sands of apartments and price, the monthly rental rate,

What impact will an unanticipated increase in the money supply have on the real interest rate, real output, and employment in the short run? How will expansionary monetary policy a

This economics of scale exist for all of the following reasons except: a. bureaucratic inefficiencies b. management problems c. failures in information flows d. firm size is to

comparison between neoclassical factor endowment theory of international trade and classical labor cost theory of comparative advantage

working of static and dynamic multiplier in consumption function

A one-car taxi company receives an average of 18 calls per day. The receptionist takes down details of the requested journey and relays them to the driver by radio. Each passenger'

What are the advantages of leaving resource allocation to price allocation? Ans) The 5 benefits are Neutral, Flexible, Freedom of choice, No administrative cost and lastly Dimin