Q: If C = 300 billion and I = 150 billion find the aggregate demand in a two sector economy
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In a two sector economy, aggregate demand is a function of _________ and __________
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- Suppose a market is made up of five consumers, each with identical individual demand given as P = 8 -4Q. What is the aggregate demand curve?How was the aggregate supply curve different from the supply curve for single good like pizza?According to the Congressional Budget Office's projections, real GDP in 2007 was marginally higher than real potential GDP. If potential GDP is correctly assessed, then during that period : (A) the economy was on its long run aggregate supply curve. (B) the economy was to the left of its long run aggregate supply curve. (C) the economy was slightly to the right of its long run aggregate supply curve.
- If C = 300 billion and I = 150 billion find the aggregate demand in a two sector economyAre the determinants of aggregate demand the same things that apply to demand for an individual good?The equations below describe the aggregate demand of an economy. There are neither a flow of goods and services nor capital across borders of this country. Y=C +I +G………. (1) C=Co+C(Y^d)……. (2) Y^d= Y-T…………. (3) T=t(Y) ……………. (4) I=Io+I(r)………… (5) G=Go……………... (6) M=PL(r,Y)……… (7) where Y is gross real domestic product, C is aggregate consumption expenditure by households, I is aggregate investment expenditure by firms, is government purchases of goods and services, Y^d is disposable personal income, and T is total income tax payments to government by…
- The equations below describe the aggregate demand of an economy. There are neither a flow of goods and services nor capital across borders of this country. Y=C +I +G………. (1) C=Co+C(Y^d)……. (2) Y^d= Y-T…………. (3) T=t(Y) ……………. (4) I=Io+I(r)………… (5) G=Go……………... (6) M=PL(r,Y)……… (7) where Y is gross real domestic product, C is aggregate consumption expenditure by households, I is aggregate investment expenditure by firms, is government purchases of goods and services, Y^d is disposable personal income, and T is total income tax payments to government by…Suppose you are given the following information about an economy: Short run Aggregate Supply: SRAS = Y = 5000r+ 14,400 Long run Aggregate Supply: Aggregate Demand: Investment Spending: Consumption Spending: Government Spending: Net Exports (eX – iM): LRAS = Y* = 25,000 AD = Y=C+I+G+NX_ I = 4000 – 250r C = 1000 +0.75(Y – T) G = 2000 NX = 500 Taxes – Transfers: T = 2400 Monetary Policy: Money Demand: Money Market equilibrium: Fisher equation: where i is the nominal interest rate (i.e. when the interest rate is 7%, it means i= 7) r = 2 n м 3 20,000- 2000i M$ = MD i = r+T e. Find the short run equilibrium level of real GDP (Y), and inflation rate (t), in the short run. What is the output gap in the economy? Is it an expansionary or recessionary gap?How an exogenous increase of Mexico’s GDP will influence U.S. aggregate demand and GDP.
- Suppose the government invests a significant amount in infrastructure. The model of aggregate supply and aggregate demand implies what effect on the economy?Economics 1. Suppose an economy that produces two goods experiences an increase in its stock of labor. Will this increase of labor cause a rise in output of both industries according to the: Ricardian model, Specific factors model, Heckscher-Ohlin modelIn long-run macroeconomic equilibrium, aggregate quantity demanded equals aggregate quantity supplied equals potential GDP. Select one: True False
