Is consumption depend on GDP in the cross model, Macroeconomics

Assignment Help:

Q. Is Consumption depend on GDP in the cross model?

Aggregate demand

The consumption function

Consumption C(Y) depends positively on GDP in the cross model

Remember that in classical model, consumption relies on the real interest rate. In cross model it relies on GDP. Note that it isn't possible to include r in the cross model as it is fixed. Though, we need to justify the dependence of C on Y.


Related Discussions:- Is consumption depend on GDP in the cross model

Estimated annual expense, The annual income from an apartment complex is $2...

The annual income from an apartment complex is $20,664. The annual expense is estimated to be $3,414. The apartment complex could be sold for $146,499 at the end of 10 years. If yo

Perfectly competitive retail market, Why a perfectly competitive retail mar...

Why a perfectly competitive retail market is more competitive than a monopoly

Compare and contrast federal government expenditures, Compare and contrast ...

Compare and contrast federal government expenditures, state and local government expenditures, and financing government expenditures. Suggest a total of three actions that should b

Supply & Demand Graph, Ok, so the supply curve for goal in the U.S. is perf...

Ok, so the supply curve for goal in the U.S. is perfectly elastic, while the demand curve has the usual shape. In 2011, the U.S. used 1,003 million tons of coal at an average price

Abnormal profits, explain the terms abnormal profits and normal profits

explain the terms abnormal profits and normal profits

Show factors that govern the price elasticity of demand, Q. Show factors th...

Q. Show factors that govern the Price Elasticity of Demand? a. The number and closeness of the substitutes- The more and the better the substitutes, the grater is the Price Ela

Online homework, I sent to you an email for the online homework the deadlin...

I sent to you an email for the online homework the deadline through 10 hours all questions are about 10 please do it in full score

Explain gdp, You are given the following information about an economy: ...

You are given the following information about an economy: Gross Investment  =                                                         40 Govt. purchases of goods & service =

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