User Account

All Pages

Determination model of an open economy

Assignment Help Business Management
Reference no: EM131596227

A simple Keynesian income determination model of an open economy is described by the following equation

AE = C + I + G + X - M, where

C = C + bYd

Yd = Y - T

T = T + tY

I = I

G = G

X = X

M = mY

(a) Derive, from first principles, the equilibrium level of income. Sketch the equilibrium position using a well-labelled Keynesian cross diagram. 

(b) Explain the Keynesian expenditure multiplier. Derive the formula for the multiplier in this model.

Reference no: EM131596227

Questions Cloud

Explain situations when denormalizing a table is acceptable : Explain typical situations when denormalizing a table is acceptable. Provide one example of denormalizing a database table to justify your response.
Amortizing mortgage-what must monthly payments : what must monthly payments be over the 15-year period?
Define the elements of criminal investigation : Define criminal investigation and list all of the elements of criminal investigation.
An interest-only mortgage-what will the monthly payments be : An “interest-only” mortgage is made for $100,000 at 10 percent interest for 10 years. What will the monthly payments be?
Determination model of an open economy : A simple Keynesian income determination model of an open economy is described by the following equation
Who originally designed and created linux : Who originally designed and created Linux? Which of the following Linux directories is considered to be similar to the Windows folder in the Microsoft OS?
Identifying a communications strategy : BIZ101: Business Communications Assessment. Make sure the purpose of the report is clear, you are identifying a communications strategy based on chosen topic
Create a web page that contains your name as the title : Use a text editor such as Notepad to create a Web page that contains your name as the title and at least two paragraphs of text.
What type of order and at what transaction price : What type of order, and at what transaction price(s), would you place to accomplish this? What might go wrong?

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd