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- Imagine our economy is in the situation which is the supply of goods equal the demand of the goods if the GDP output of the economy increase what was the new equilbrium point for goods market explain in detailIf households spend $80 billion on goods and $70 billion on services, how much in revenues do businesses receive in the product market?Consider the following equations describing the components of demand and equilibriumin the goods market:C= 120 + 0.5 (Y - T)I = 40G=20T= 40 What is aggregate demand?
- Describe whether each component of demand comprised GDP has become more important when calculating GDP less important or stayed the sameAggregate demand is an economic measurement of the total amount of demand for all finished goods and services produced in an economy. Aggregate demand is expressed as the total amount of money exchanged for those goods and services at a specific price level and point in time. Discuss how the four components of aggregate demand affect income?Please explain three perspectives related to the consumption.
- Draw horizontal or downward sloping price-consumption curve and explain in detail with possible exampleExplain, in detail, how the adjustment to macroeconomic equilibrium occurs when spending is less than production. Be sure to discuss how inventories play a crucial role in the adjustment process. State what happens to GDP and employment during the adjustment process.the phrase "a sustained increase in the average level of prices for goods and services in an economy over time" describes which of the following terms?
- Explain how the following scenario affect the consumption schedule and real GDP, other things equal (use an appropriate diagram to illustrate answer) a. A sharp increase in crude oil price from $30 to $80 per barrel.What is the formula for measurement on the demand side of GDP? Include a brief definition of each of the formula componentsCreate a graph for an aggregate demand curve. Use the variable ‘Price Level’ for the vertical axis and ‘Real GDP’ for the horizontal axis. In your answer, explain why there is an inverse relationship between the price level and real GDP. Use your graph to illustrate your explanations. Also, discuss determinants of Aggregate Demandor factors that shift Aggregate Demand curve.
