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What is the difference between aggregate expenditure and consumption spending? Suppose we drop the assumption that net exports do not depend on real GDP .
What is the difference between aggregate expenditure and consumption spending?
Suppose we drop the assumption that net exports do not depend on real GDP Draw a graph with the value of net exports on the vertical axis and the value of real GDP on the horizontal axis. Now, add a line representing the relationship between net exports and real GDP Briefly explain why you drew the graph the way you did.
According to a report from the US Department of Commerce, new orders for capital goods increased by $ billion between April and May Spending on capital goods is counted as part of which component of aggregate expenditure? Use a line diagram to illustrate the effect of this increase in spending on equilibrium GDP For simplicity, assume that the adjustment to the new equilibrium GDP happened immediately and that there were no changes in the other components of aggregate expenditure.
If the equilibrium level of GDP is $ using the equations for I, and shown above, find the value of the marginal propensity to consume.
Suppose the United States experiences a long period of relatively stable prices while other countries experience long periods of inflation. How will this affect US net exports?
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