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Can someone please assist me with these macroeconomic questions? Please also show the graphs for Q1, Q2, and Q3. Thank you for your time! (Q2)
Can someone please assist me with these macroeconomic questions? Please also show the graphs for Q1, Q2, and Q3. Thank you for your time!
(Q2) What happens to the equilibrium in aggregate output if the interest rate falls? Use a graph of the aggregate expenditure line to answer the question.(Q1) What is the relationship between government purchases and disposable income? What would the graph of the government purchase function look like? (Pre Qs). What are the three categories of investment? Would purchases of stocks and bonds be counted as investment? (Q5) What are three factors that lead to currency appreciation? If the U.S. Dollar strengthens (appreciates) relative to the Mexican Peso (it takes fewer dollars to buy Pesos), what will be the likely impact of trade between Mexico and the U.S.? (Q3): Assuming the MPC = 0.75, determine the size of the simple spending multiplier, the size and direction of the shift in the aggregate expenditure line, the size and direction of the total change in real GDP demanded, and the size and direction of the shift in aggregate demand following a $20 billion decrease in autonomous investment. [llustrate your answer with graphs of the aggregate expenditure line and the aggregate demand curve (showing how the curves shift)Step by Step Solution
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