Please help to the following questions. Thank you for your assistance.
Suppose that inventory growth in the U.S. is unexpectedly high this year. What is likely to happen to output next year, and why? Is the economy currently in equilibrium? Use the Keynesian cross model to explain your answers.© BrainMass Inc. brainmass.com October 24, 2018, 8:18 pm ad1c9bdddf
Embedded in the investment component I there are both intended investment i, that is, investment which is part of producers plans and unintended investment that is unforeseen changes in inventories, Δinv, that come about because of unexpected changes in the level of consumption demand or in general final ...
Keynesian cross model is utilized.
The Keynesian Cross Model
This is a power-point presentation that demonstrates the IS/LM MODEL as outlined in Mankiw's intermediate macroeconomics text. The slides build the model up one step at a time and explain how the relationship between the Keynesian cross, the money market and the IS/LM model.View Full Posting Details