What conditions comprise equilibrium in a macroeconomy

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1. In the model laid out in this chapter, who receives? Who spends? Who saves?

2. What conditions comprise equilibrium in a macroeconomy?

3. Saving described as a "leakage" from the circular flow. How is it a leakage?

4. Describe how the problem of leakages in solved in the classic model.

5. List five factor, aside from the level of income, that can affect the level of consumption in a macroeconomy.

6. What determines aggregate in the Keynesian model? Draw and labor a graph.

7. Draw a "Keynesian cross" diagram, carefully labeling the curves and the equilibrium point.

8. Describe how adjustment to equilibrium occur in the Keynesian model.

Reference no: EM131560430

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