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!
Q. Aggregate demand in the IS-LM model?
Aggregate demand
Aggregate demand depends on Y and R in the IS-LM model
As investments depend on R and consumption and imports depend on Y, aggregate demand will rely on both Y and R. In cross model, we used notation YD(Y) for aggregate demand. In IS-LM model, we should instead use the notation YD(Y, R). Now We have
YD(Y, R) = C(Y) + I(R) + G + X - Im(Y)
It doesn't make much of a difference if we allow C and Im to depend on R as well, YD will rely positively on Y and negatively on R in any case.
It must also be clear that we can no longer determine GDP the way we did it in cross model. We can't successfully solve the equation YD(Y, R) = Y since we have only one equation and two unknowns (Y and R). We need one additional equation if we want to solve for both Y and R. This equation would come from the money market.
A sudden decrease in the growth rate of GDP will cause a change in: A. planned investment spending. B. unplanned investment spending. C. both planned and unplanned investment spend
discuss modern theory of determination of rent?
Was money a better store of value in the United States in the 1950s than it was in the 1970s? Why or why not? In which period would you have been willing to hold money? Which one w
You have been invited by world leaders to be part of a team of international economists selected to make recommendations on how the international community might work together more
In an effort to provide tax relief for households while still balancing the budget, Congress votes to raise business taxes and decrease personal taxes. explain the impact of these
Suppose the utility function is given by: u(x,y) = 3x+4y. What kind of goods are X and Y and what is the MRS?
briefly explain any five uses of national income statistics
how the theories of trade cycle affects in the business
Imputed values included in GDP are the: A) market prices of goods and services. B) estimated value of goods and services that are not sold in the marketplace. C) price of
Consider an economy that having only of those who bake bread and those who make its ingredients. Assume that this economy's production is as follows: 1 million loaves of bread
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