Category: Economics > Macroeconomics
Subject: calculate autonomous aggregate demand / short-run output / multiplier
Details: C = 350 + 0.75(Y-T) - 200r
Ip = 200 - 500r
G = 250, T = 200, NX = 50
r = 5.75%
Answer the following questions using the above information. Show workings.
a) Caluclate autonmous aggregate demand.
b) Calculate the short-run output.
c) Calculate the multiplier.
d) If Y* is 2500 what is the amount of the gap, and what type of output gap is it?
e) What would the interest rate have to be to eliminate the output gap?
... shock in the money market (for instance, autonomous changes in. ... The aggregate demand curve is a schedule showing the aggregate spending Y of the ...
... Suppose as well that the aggregate demand curve is Y = 2 ... run percentage change in the aggregate price level ... of the multiplier associated with autonomous spending ...
... an inverse relationship between interest rates and Aggregate Output). ... A large change in autonomous business investment ... along the Money Demand Schedule), where ...
... supply to stimulate the economy and aggregate demand to contract ... increases to $200, real GDP demanded will increase a ... to $2,000 ___c_ 6. If autonomous net taxes ...
... investment, government purchases, exports, and autonomous consumption. ... Monetary policy affects aggregate demand. ... to a decrease in domestic quantity demanded. ...
... of shifts in aggregate demand and short run aggregate supply. ... Assume that aggregate demand must shift by $160 billion ... theory, as with an autonomous increase in ...
