Q. Show the analysis of cross model?

We can divide our analysis of cross model into three sections: 

• Aggregate demand. Aggregate demand is a major component of cross model. The main purpose of this section is to arrive at conclusion that aggregate demand depends on real GDP.
• Determination of GDP. GDP is determined very contrarily in the cross model compared to classical model.
• Labor market. One of the major points of the Keynesian model is to allow for unvoluntary unemployment. In classical model of the labor market, we are always in equilibrium and there is no unvoluntary unemployment.

 

Posted Date: 8/14/2013 2:38:51 AM | Location : United States

Ask an Expert

Related Discussions:- Show the analysis of cross model, Assignment Help, Ask Question on Show the analysis of cross model, Get Answer, Expert's Help, Show the analysis of cross model Discussions

Write discussion on Show the analysis of cross model
Your posts are moderated

Write your message here..

Related Questions

Influx of foreign labor, If a nation were to experience an influx of foreig... If a nation were to experience an influx of foreign labor into the market for corn production, the production possibilities frontier for the nation would: a. shift inward due to

What causes a demand curve to shift, What causes a demand curve to shift? ... What causes a demand curve to shift? a. Changes into the Prices of Related Goods Substitutes Complements b. Changes into Income Normal Goods Inferio

What is gross national income per capita, What is gross national income per... What is gross national income per capita The absolute difference in gross national income per capita is 29,828 PPP$ that means UK income per capita is approximately 860% higher

Causes and consequences of inflation for an economy, Question 1: Discus... Question 1: Discuss why living standards are higher in some countries than others. Question 2: (a) How is inflation measured? (b) What are the causes and consequence

Anti-trust legislation, Explain why anti-trust legislation supports a perfe... Explain why anti-trust legislation supports a perfectly competitive market. Give at least one specific example of legislation to justify your explanation.

What is bowed-out shape, Why does a production possibilities frontier with ... Why does a production possibilities frontier with increasing opportunity costs have a bowed-out shape?   The curve is bowed-out because some resources are better suited for the

What do you mean by yield curve, Q. What do you mean by yield curve? Yi... Q. What do you mean by yield curve? Yield curve is a graph of interest rates of different maturity (recalculated to yearly rates) at a specific point in time. It's common for t

Compute the equilibrium level as-ad model, 1 . Use the AS/AD model to a... 1 . Use the AS/AD model to a . Demonstrate graphically and explain verbally the situation the US economy is currently in. b. In the diagram you drew for part (a) above, sh

Franchises ensure appropriate international markets, How can franchises ens... How can franchises ensure their products are appropriate for international markets?

Calculate bright star equity fair value and wacc, After the fall of the kin... After the fall of the king, a tax rate of 20% has been introduced in the Frog Islands Republic. The value of Sun corporation is now 100.000€. Bright Star Co. debt has no changed. T