Show the analysis of cross model, Macroeconomics

Assignment Help:

Q. Show the analysis of cross model?

We can divide our analysis of cross model into three sections:

Aggregate demand. Aggregate demand is a major component of cross model. The main purpose of this section is to arrive at conclusion that aggregate demand depends on real GDP.
Determination of GDP. GDP is determined very contrarily in the cross model compared to classical model.
Labor market. One of the major points of the Keynesian model is to allow for unvoluntary unemployment. In classical model of the labor market, we are always in equilibrium and there is no unvoluntary unemployment.

Related Discussions:- Show the analysis of cross model

Healthcare cost, define the economic principle of opportunity cost explain ...

define the economic principle of opportunity cost explain whether spending 17.9% of gdp is too much or too little to spend on healthcare

Can growth arise without development, Can growth arise without development?...

Can growth arise without development? Growth is just one feature of development and therefore is an essential but not enough condition for economic development. For example, g

Who was the labour chancellor gordon brown, Who was the Labour Chancellor G...

Who was the Labour Chancellor Gordon Brown In the period between 1997 and 2006 the Labour Chancellor Gordon Brown was committed to self-imposed Sustainable Investment Rule that

Equilibrium in the money market, Equilibrium in the money market ...

Equilibrium in the money market In the IS-LM-model, we have equilibrium in the money market when MD(Y, R) = MS This is the equation

Explain between perfect competition and monopoly market, "No point is bette...

"No point is better accepted than the fact that the monopoly price is higher and the output smaller than what is socially ideal. The public is the victim." (a) Explain between

Fiscal, what is the supply side

what is the supply side

How to calculate inflation rate, Assume the residents of an economy spend a...

Assume the residents of an economy spend all of their income on cauliflower, broccoli and carrots. In 2003 they buy100 heads of cauliflowers for Rs. 200; 50 bunch of broccoli f

Currency, Assume that Jimmy Cash has $2100 in his checking account and uses...

Assume that Jimmy Cash has $2100 in his checking account and uses his checking card to withdraw $210 from his ATM machine. By what amount did M1 change from this individual transac

Stock of a particular company, Suppose that you have bought a total of 3100...

Suppose that you have bought a total of 3100 shares of stock of a particular company. You bought 1200 shares of stock at $17 per share, 900 shares of stock at $11 per share, and th

Perfect competition, c) Explain why perfectly competitive markets lead to a...

c) Explain why perfectly competitive markets lead to an allocatively efficient allocation of resources in the long run

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages