Idea of equilibrium in the income-expenditure model

Assignment Help Business Economics
Reference no: EM13802476

Use your own words to explain the idea of equilibrium in the income-expenditure model. As part of your answer explain what happens when aggregate expenditure either exceeds or falls short of output in the current period and what impact this has on production in the next period.

Reference no: EM13802476

Questions Cloud

What is marginal excess burden : Explain in detail the concept of excess burden and explain the factors significant in the calculation of the excess burden. What is marginal excess burden and why is it important concept for policy evaluation?
Determine the optimal level of a public good : Discuss any problems associated with using majority voting to determine the optimal level of a public good.
Find the firms marginal rate of technical substitution : A firm uses labor and capital to produce output according to the production function q=100KL, where L is the number of units of labor used and K is the number of machines. What is the marginal product of labor. What is the marginal product of capital..
Interest rate will there be an excess supply of money : Look at the graph of the market for loanable funds found below and answer the following questions: At which interest rate will there be an excess supply of money? What does this mean? At this rate, what is the demand for money? What is the supply?
Idea of equilibrium in the income-expenditure model : Use your own words to explain the idea of equilibrium in the income-expenditure model. As part of your answer explain what happens when aggregate expenditure either exceeds or falls short of output in the current period and what impact this has on pr..
Price level and to the equilibrium level of aggregate output : Use the AS-AD model to describe what would happen to the price level and to the equilibrium level of aggregate output in the short run in the following situations: The Fed buys bonds in the open market during a period of low unemployment and no exces..
What happened to cause the fall of oil and gasoline prices : The student investigated the pricing of oil and gasoline. The study included a comparison of 2014 prices to 2015 prices. Explain the differences observed by means of supply and demand theory. What happened to cause the fall of oil and gasoline prices..
Investment demand curve in a certain economy : Suppose that the investment demand curve in a certain economy is such that investment declines by $100 billion for every 1 percentage point increase in the real interest rate. Also, suppose that the investment demand curve shifts rightward by $150 bi..
Depreciation for the year using units-of-production method : If your taxable income is $100,000 and state tax rate is 6% and federal tax rate is 34%, how much federal tax do you owe? A truck has a cost basis of $70,000. It has a total life of 150,000 miles with a $10,000 salvage value. You drove 50,000 miles i..

Reviews

Write a Review

Business Economics Questions & Answers

  Will you earn more or less if you invest in the company

Which is the safer investment, Company A Stock, Company B Stock, or a porfolio containing half of each If you make a lucky prediction about the prices of the stocks of the two companies, will you earn more or less if you invest in that company rat..

  Preferences for non-food consumption and food consumption

Suppose low-income people have preferences for non-food consumption (NF) and for food consumption (F). In the absence of any income transfer programs, a person's budget constraint is given by NF + PFF = I where PFF is the price of food relative to no..

  1name 5 stylized facts about the business cycle2 rank order

1.name 5 stylized facts about the business cycle.2. rank order these three ideas from most optimistic about how a

  Monopolist has demand and cost curves

Movies are distributed in a variety of forms, not just first run theatrical presentations. What other ways are movies distributed. What are the different price points.

  Compute the coefficient of variation

Compute the coefficient of variation for each project and Classify the preferred project according to this criterion.

  An attempt to reverse declining global sales

Major restructuring plan in an attempt to reverse declining global sales. Suppose that as part of the restructuring plan Mitsubishi conducts an analysis of how labor and capital are used in its production process. Prior to restructuring Mitsubishi’s ..

  Contingency theories try to predict leadership efficiency

Contingency theories try to predict leadership efficiency. Common sense would tell us that not all traits or behaviors of leaders are positively related to effectiveness all of the time. Instead, whether a leader behavior is effective will depend on ..

  Think about the eight symptoms of groupthink

Think about the eight symptoms of "GroupThink" as discussed in the text. Have you experienced these symptoms in groups that you are a part of or are aware of? How was the decision affected?

  How does domestic price ratio change

How does domestic price ratio change. How will country's production pattern change. How will its consumption and trade pattern change. How is welfare affected. Is re a difference to import tariff.

  Determine consumption and sacving of maria in period

Maria decides to switch a major and is now a student in business. in period 2, she will have a BA in business and her income will be $88000. determine Maria's lifetime wealth. determine consumption and sacving of maria in period 1 and period 2.

  What determines it what is elastic and inelastic demand

You just opened a flower shop and are trying to understand pricing issues. You were told that elasticities are very important in determining prices and what products to supply, so you decide to investigate this concept.

  What actions did congress and supreme court take

What actions did Congress and Supreme Court take to reduce monopoly power in late-19th century. How successful were these actions in regulating business activities.

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