Show the analysis of cross model, Macroeconomics

Assignment Help:

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.

Related Discussions:- Show the analysis of cross model

Lm curve with inflation, The LM curve with inflation We know that LM ...

The LM curve with inflation We know that LM curve will shift upwards when P increases (presuming MS is constant). This is still true though we can also add that LM curve glid

As the result of a tariff who will benefit, In general, who will benefit as...

In general, who will benefit as the result of a tariff? Domestic Producers Domestic Consumers The domestic government a. I only b. II only c. both I and III d.

Equilibrium, If the marginal disutility of labor increases, the equilibrium...

If the marginal disutility of labor increases, the equilibrium real wage increases and the equilibrium quantity of labor goes up. True or false?

Household production, Assume two individuals, A and B, are considering marr...

Assume two individuals, A and B, are considering marriage, and each face the same amount of hours a week to be split between market-labor and home-labor. Assume that A can make $2

Explain the gains from trade of market, Explain the Gains from Trade of mar...

Explain the Gains from Trade of market. Producer Surplus, Consumer Surplus, Gains through Trade and Efficiency of Markets: Consumers and producers both are better off since

Grocery store manager, A grocery store manager would like to have an idea c...

A grocery store manager would like to have an idea concerning the average amount milk the store sells per day. In a sample of 70 days, the average amount number of gallons sold was

Economic analysistenets of tenets, One of the main tenets of economic analy...

One of the main tenets of economic analysis is that people act in their own narrow interests. Why, then, do people leave tips in restaurants? If a study were to compare the size of

How to evaluate total savings, Q. How to evaluate total savings? Total...

Q. How to evaluate total savings? Total savings Total savings S(r) depends positively on the real interest rate Remember that total saving

Example of macroeconomics, Could you please tell me an example and describe...

Could you please tell me an example and describe example of macroeconomics?

Review of related economic theory, Oil price shocks lead to large adverse s...

Oil price shocks lead to large adverse supply shocks in the macroeconomy, infer Dornbusch et al (2008) who define an adverse supply shock as; ‘one that shifts the aggregate supply

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages