Explain the difference between given expressions, International Economics

Assignment Help:

Q. Explain the difference between the following two expressions:

Y = C(Yd) + I + G + CA(EP*/P, Yd) and

Y = C + I +G + CA

Answer: The first expression corresponds to a behavioral equation and thus may express equilibrium conditions for the output market or the aggregate desired demand for output. The second equation is merely an identity that is always true.


Related Discussions:- Explain the difference between given expressions

Intra industry trade, what is the diffrent between inter-industry trade and...

what is the diffrent between inter-industry trade and intra industry

Values of private saving in closed and open economies, Q. Discuss the value...

Q. Discuss the values of private saving in closed and open economies. Answer: In the closed economy private saving Sp is equal to I + (G - T) and in an open economy private sav

True or false, in a mixed economy, the government tries to help meet the ne...

in a mixed economy, the government tries to help meet the needs of the public on a limited basis

Neoclassical and classical trade theory, Q. Neoclassical and Classical tra...

Q. Neoclassical and Classical trade theory makes the case that free trade can bring a country to an optimum and economically efficient use of its resources; and therefore is an op

Free trade and protectionism, why is international trade important for sout...

why is international trade important for south Africa?.

Explain integration of international trade, Explain Integration of Internat...

Explain Integration of International Trade and Foreign Investment

Trade theory, what you do understand by the term effective rate of protecti...

what you do understand by the term effective rate of protection

Herbeler''s increasings cost doctrine, How do countries gain under the incr...

How do countries gain under the increasing cost assumptions

Does foreign aid lead to economic growth?, Question 1: The main challen...

Question 1: The main challenge facing governments in the 21st century revolves around containing and/or downsizing of public spending. Explain why reduced government interventi

Write Your Message!

Captcha
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