Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Aggregate demand and Say's Law
YD = YS in the classical model (Say's law)
Aggregate demand YD is defined as quantity of nationally produced finished services and goods that consumers, government and rest of the world want to buy under given conditions. One of the main elements of classical model is Say's Law. According to Say's Law aggregate demand is always equal to aggregate supply: YD = YS.
Say's Law is a number of times defined as 'supply creates its own demand'. Motivation for this statement is something like this. If production (YS) increases by one billion, national income would also increase by one billion. It means that individuals will have exactly one more billion for spending - just enough to buy increase in production. So YD will also increase by one billion. An increase in the supply of one billion has created an increased in demand by the same amount.
In the classical model, observed GDP Y would be equal to aggregate supply: Y = YS. GDP is concluded completely by the firms and there is no need to model aggregate demand. It's always the case that YD = Y = YS = f (L, K).
difference between gdp at market price and nnp at factor cost
is there a graph for says law?
A student is taking two courses, History and Math. The probability that the student will pass the history course is .60, and the probability of passing the math class is .70. The p
Process to control inflation rate The belief that control of inflation must be the primary economic objective of government can be traced back to neo-liberal revolution that st
An antenna in free-space driven by current Io radiates far-field E as: for 0 ≤ Φ ≤ π, here C = constant = 0 everywhere else a) Compute the power density, b) Compute t
i want an answer for my q Question 3 (5 marks) Most studies of firms’ long run costs have found that average costs decline as firms produce increasingly larger output levels (eco
Movie attendance dropped 8 percent as ticket prices rose a little more than 5 percent. What is price elasticity of demand for movie tickets? Could price elasticity be somewhat over
1. Consider a natural monopoly. I. Show graphically and discuss how price and quantity are set by the natural monopolist. II. Define the areas corresponding to the consumers'
You have a choice between a lottery lump sum payout of $10,000,000 today or a series of 25 annual annunity payments the first payment will be one year from today ad a discount rate
Compare Classical economic theory to Keynesian economic theory. Which approach, if either is the US currently applying and what have been the effects of such policies?
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!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd