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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.
Let a macroeconomic model be of the following form: C = a + bY D a = 10 T = T 0 b = 4/5 G = G 0
Typical start-up businesses' estimated profit are forecasted as following: State Bad Good Probability 81% 21%
The employment-population ratio gives the number of people: Select one: a. working. b. working as a percentage of the number of people available to work. c. in the labor force.
what is credit multiplier?
Write the compensation principal of socitovsky
Illustrate the circular flow of income and expenditure according to their models ( classical and keynesian)
discuss the different of cost?draw the cost curves
x=40-0.2p where x=x1+x2 c1=50+2x1+0.5x1 c2=100+10x2
Does a firm's price equal marginal cost in the short run, in the long run, or both? Explain.
Price/Feeder Quantity Demanded Quantity Supplied $300 500 1800 270 600 1700 240 700 1600 210 800 1500 180 1000 1400 150 1100 1300 120 1200 1200 90 1300 1100 60 1400 1000 30 1500 90
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