National income equilibrium

Related BrainMass Solutions

• National income and expenditure components

  442412 National income and expenditure components The national income and expenditure components for each level of the economy of Lala Land are given below. What is the total expenditure at each level of income?

• Graph to Determine Equilibrium Levels

  Hence, Year 1: National Income = 899 - 85 = 814. Year 5: National Income = 1530 - 150 = 1380. 2) Consider the following graph, and determine the equilibrium level of income algebraically.

• the equation for the aggregate expenditure (AE) function

  The expert applies the equilibrium condition to determine the level of equilibrium national income.

• Question about economy in a boom with equilibrium national income above full employment GDP

  10057 economy in a boom with equilibrium national income Using the aggregate demand and aggregate supply model, draw an economy in a boom with equilibrium national income above full employment GDP.

• The marginal propensity to spend in this economy

  What is the equilibrium level of national income? b) The marginal propensity to spend in this economy is 0.75. What is the value of the multiplier?

• How the LM curve is derived & how IS-IM affects the economy

  If the central bank increases the money supply, the LM curve shifts to the right, decreasing interest rates and increasing national income.

• Spending calculations

  identity called the savings identity, which says that under equilibrium conditions, national saving = investment.

• effects of monetary and fiscal policy

  However, at lower levels of national income, the LM curve is positively sloped and there is no complete crowding out.

• Calculating the equilibrium interest rate

  What is the equilibrium interest rate? b. Suppose income decreases from 1,000,000 to 999,000 determine the new equilibrium interest rate. c.

• What is Economics?

  There are three approaches to Measuring National Income (GDP): 1. Expenditure method in which the NI is equal to sum of all financial expenditure flows 2.