Show the adjustment process to new equilibrium using graph, Macroeconomics

Assignment Help:

Consider the multiplier model we have studied in class. Assume that the economy is initially in equilibrium and that real income is $180. The marginal propensity to expend is 0.66. If autonomous exports have just fallen by $20, what will happen to equilibrium income? What about unemployment? Show the adjustment process to the new equilibrium using a graph.


Related Discussions:- Show the adjustment process to new equilibrium using graph

According to bowen leamer and sveikauskas, According to Bowen, Leamer, and ...

According to Bowen, Leamer, and Sveikauskas, which of the following is true? a. A nation indirectly exports its most abundant factors of production. b. A nation indirectly im

Average monthly total revenue from the sale, The Stop decay company sells a...

The Stop decay company sells an electric toothbrush for $25. Its sales have averaged 8,000 units per month over the past year. Recently, its closest competitor, Decay fighter, redu

What are the international economic crisis, What are the international econ...

What are the international economic crisis A current account surplus can only take place in one nation if there is a current account shortage in another country. So it makes no

Marginal propensity, Marginal propensity to SPEND refers to: a. a nation's ...

Marginal propensity to SPEND refers to: a. a nation's additional spending on a good per an additional unit of expenditure. b. a nation's additional consumption based on a unit incr

Heckscher-ohlin model, Which of the following statements regarding the heck...

Which of the following statements regarding the heckscher-ohlin model and Ricardian trade theory is TRUE? a. Both the Heckscher-Ohlin and Ricardian models are current, relevant,

Agency mortgage-backed securities, This release also states that the Federa...

This release also states that the Federal Reserve is in the process of purchasing $1.25 trillion of agency mortgage-backed securities and about $175 billion of agency debt. Additio

Gross domestic product, GDP is an important indicator of a nation's economi...

GDP is an important indicator of a nation's economic performance. It has many components which contribute to the growth of the economy. Oil is a minor component of GDP and therefor

Construction of real gross domestic product, Q. Construction of real gross ...

Q. Construction of real gross domestic product ? To be able to make reasonable comparisons of GDP over time, we should adjust for inflation. For instance, if prices are doubled

Net profit advertisement relationship, In 2009, ABC Company made $2M of net...

In 2009, ABC Company made $2M of net profit and spent $100,000 on advertisement. In 2010, it made $2.5M of net profit and spent $150,000 of advertisement. Based on this information

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