1. Suppose, in a two-sector model, that individuals receive the following payments from the business sector: wages $520, interest $30 rent $ 10 and profits $80. Consumption spending is $550 and investment is $90.
a. Find the market value of output and household saving
b. What is the relationship of saving and investment?
a) the market value of final output is $640, found by adding wages of $520 + interest of $30 + rent of ...
The expert determines the relationship between saving and investment.
Long and Short Run Aggregate Supply Curves
Explain the differences between the long run and short run aggregate supply curves. Consider these differences and explain how an expansionary gap occurs.View Full Posting Details