Résultats de recherche
Learn how equilibrium income is determined by the interaction of autonomous and induced expenditures in the Keynesian model. Find out how a change in investment affects income and the multiplier effect with diagrams and examples.
Learn how to identify macro equilibrium in the income-expenditure model, where national income equals aggregate expenditure. See graphical and tabular examples, and explore how changes in aggregate expenditure affect equilibrium.
Learn how to use a Keynesian cross diagram to analyze the relationship between aggregate expenditure and economic output in the Keynesian model. The equilibrium occurs where the aggregate expenditure line crosses the 45-degree line, which represents the set of points where aggregate expenditure equals output or national income.
This exercise is designed to show you how to find a new equilibrium in the income-expenditure model following a change in aggregate expenditure.
Topics include how to use a market model to predict how price and quantity change in a market when demand changes, supply changes, or both supply and demand change. In a competitive market, demand for and supply of a good or service determine the equilibrium price.
GDP is equal to the actual expenditure on domestically produced goods and services. Therefore, actual expenditure on domestically produced goods and services is equal to income (Y) by assumption. Note that actual investment expenditure includes involuntary changes in inventory.
How does the aggregate supply and aggregate demand model explain equilibrium of national output and the general price level? How do economic fluctuations affect the economy's output and price level? Fiscal policy holds some of the keys.
