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

User Account

All Pages