Determine how is equilibrium achieved in the economy

Assignment Help Microeconomics
Reference no: EM13238521

Using the Keynesian cross model, draw a graph to illustrate and explain what will happen in an economy when planned aggregate expenditures are greater than real GDP (i.e., A.E. > Y). How is equilibrium achieved in this economy?

Reference no: EM13238521

Questions Cloud

What is l & k in india and what is total cost : A furniture manufacturer is considering moving its production to India. Its production function is: Q = 1.52L.6K.4. In Canada, w = $24 & r = $4. In India, w = $4 & r = $24. a. What is the K/L ratio in Canada If Q = 100, what is L & K in Canada What..
What is the speed of the rocket : A rocket starts from rest and moves upward from the surface of the earth, What is the speed of the rocket when it is 340m above the surface of the earth
Explain what will be the final temperature of water : If 100 grams of liquid water at 100 C and 200 grams of water at 20 C are mixed in an insulated container, what will be the final temperature of water
Explain what is the equilibrium concentration of c2h5oh : what is the equilibrium concentration of C2H5OH? Help me work this please. My book shows answer of 27. However, I worked it and got 2.7
Determine how is equilibrium achieved in the economy : Using the Keynesian cross model, draw a graph to illustrate and explain what will happen in an economy when planned aggregate expenditures are greater than real GDP (i.e., A.E. > Y). How is equilibrium achieved in this economy
What change is needed in the hanging mass : We wish to maintain a pattern with a given number of loops and a fixed given frequency, If we reduce the density of the string
Explain the value of the henry''s law constant k calculated : what is the solubility of N2 in a diver's blood?[Use the value of the Henry's law constant k calculated in Part A, 6.26 * 10^-4]" Assume that the composition of the air in the tank is the same as on and and that all of the dissolved nitrogen remai..
What impact on the value of total consumption in the economy : The marginal propensity to consume is the amount that will be consumed out of each additional dollar earned. Suppose that the MPC has a value of 0.95. If this is true, then a $10 million increase in disposable income.
Is the frequency lower higher or the same : When the density of the string is changed, say increased, what is the effect on the frequency required to obtain a given number of loops

Reviews

Write a Review

Microeconomics Questions & Answers

  Information about equilibrium quantity

Recent health reports indicate that calcium is asorbed better in natural forms as milk, and at the same time, the cost of milking equipment rises. Examine the probable effects on the market.

  Explain key differences between good and poor managers

Recall the best supervisor or boss ever worked for and the worst one you ever worked for . Compare these two people in terms of their management skills and ability to perform the four management functions.

  Draw the production possibilities frontier

Determine the maximum number of lbs. of butter the economy can produce and

  Calculate the degree of operating leverage

What is DynaLinear's breakeven sales volume (in units) for converters and calculate the degree of operating leverage at a projected volume of 14,000 units and explain what the DOL means.

  What number of drivers appears to be most efficient

What number of drivers appears to be most efficient in terms of output per driver and what number of drivers appears to minimize the marginal cost of transportation assuming that all drivers are paid the same salary?

  What are possible opportunity cost of opening artic landa

1. Why do you suppose that firms in Artic nations are already developing specialized tanker ships and platforms for use in privately accessible Artic areas 2. What are possible opportunity cost of opening Artic lands to private extracti..

  Is the measure stabilizing or destabilizing

Some states are required to balance their budgets. Is this measure stabilizing or destabilizing? Suppose all states were committed to a balanced budget philosophy and the economy moved into a recession. What effects would this philosophy have on t..

  Discuss factors that affect the price elasticity of demand

Discuss the factors that affect the price elasticity of demand as they apply tolamb and make a suggestion based on your appraisal as to the likely priceelasticity coefficient.

  What would have benefitted from increased competition

name a good or service that you have purchased in recent months from a monopolist. How did the monopoly come to exist Do you think you would have benefitted from increased competition in the market for this good or service

  Identify economic concepts - comparative advantage

Choose a United States firm with global operations.  Discuss the company's activities outside the United States

  Develop production from the opportunity

Demonstrate that the expression on the right in fact represents the sum of the series on the left, Draw an appropriate cash flow diagram and indicate the formulas and factors used to evaluate the cash flow diagram

  What are economies of scale

What are Economies of Scale? Why is it Significant to understand this concept? How can one's knowledge of Economies of Scale contribute to decision making processes in organizations?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd