Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please answer with explanation l I Let the aggregate demand be described by the mction J D=D (EHmPF [Pg 1, G, YT, YFTF, ca, 30,

please answer with explanation

image text in transcribed
l I Let the aggregate demand be described by the mction J D=D (EHmPF [Pg 1, G, YT, YFTF, ca, 30, yo). Assume the following functions for consumption, exports and imports: Jr C=Co+CI{Y-TJ EX = g +|(YF TF)+lq IMP=y0+n(YT)r2q where 60, g, and m are parameters (numbers) that can be positive or negative, and c. , l , y] , g, and y; are parameters (numbers) greater than zero. Then, ALL of the following changes can shift the aggregate demand function DOWN in the Keynesian Cross diagram: a] a lower yo, lower g, lower to, lower T. lower G, lower I , and a lower E W. bl a higher m, lower n. lower on, higher T. lower G, lower 1, and a lower EH\". c] a lower yo, higher g. higher on, lower T. higher 6, higher I, and a higher Emp. dl a lower 11], lower g, lower on, lower T, higher G. higher I. and a lower Egg. e} a higher yo, higher ,6\

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Climate Policy And Nonrenewable Resources The Green Paradox And Beyond

Authors: Karen Vollebergh, Rick Van Der Ploeg

1st Edition

0262319845, 9780262319843

More Books

Students also viewed these Economics questions

Question

The background knowledge of the interpreter

Answered: 1 week ago

Question

How easy the information is to remember

Answered: 1 week ago