Explore BrainMass

Measures of Output, Prices, and Employment

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

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?

© BrainMass Inc. brainmass.com October 24, 2018, 5:32 pm ad1c9bdddf

Solution Preview

a) the market value of final output is $640, found by adding wages of $520 + interest of $30 + rent of ...

Solution Summary

The expert determines the relationship between saving and investment.

See Also This Related BrainMass Solution

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