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What would happen to the amount of economic investment

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Reference no: EM138136

Q1. 1. Given that in 1995 real GDP was $6,742.1 and nominal GDP was $7,265.4, what is the value of the GDP deflator?

2. For the Keynesian model, explain the reasons why the aggregate demand curve is downward sloping?

Q2. What would happen to the amount of economic investment made today if firms expected the future returns to such investment to be very low ?What if firms expected future returns to be very high?

Reference no: EM138136

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