Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

QUESTION 1 1 points Save Answer What of the following is not an assumption made by the income-expenditure model? 0 Prices do not change. 0

image text in transcribed
QUESTION 1 1 points Save Answer What of the following is not an assumption made by the income-expenditure model? 0 Prices do not change. 0 Consumption does not change as function of disposable income. 0 There is no government spending, nor taxes. 0 There is no trade. QUESTION 2 1 points SaveAnswer 11 a :1 10 'o a 9 2 g 8 .. s 7 M E 1, 6 5 .Plannedspeniirg2021 n 5 3 --o--AE=GDP ~ 4 5' .Piamea5penuing2022 - 3 E .3 2 2 z 1 2 \" o 0 1 2 3 4 5 6 7 B 9 10 11 Real GDP in trillions of USD The following graphs depicts the evolution in aggregate spending between 2021 and 2022 for a given economy. It can be concluded that: O autonomous spending increased in 2022 compared to 2021 O in 2022 autonomous spending increased by the same amount as GDP 0 autonomous spending decreased in 2022 compared to 2021 O in 2022 autonomous spending decreased by the same amount as GDP

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

Inflation, Unemployment And Capital Malformations

Authors: Bernard Schmitt, Xavier Bradley, Alvaro Cencini

1st Edition

0429767064, 9780429767067

More Books

Students also viewed these Economics questions

Question

4. What means will you use to achieve these values?

Answered: 1 week ago