If real GDP and aggregate expenditure are greater than equilibrium

Question # 00736113 Posted By: Lucille Updated on: 09/04/2019 04:53 AM Due on: 09/29/2019
Subject Economics Topic Macroeconomics Tutorials:
Question
Dot Image

Q1 If real GDP and aggregate expenditure are greater than equilibrium expenditure, what happens to firms’ inventories? How do firms change their production? And what happens to real GDP?

Q2 What is the multiplier? What does it determine? Why does it matter?

Q3 How do the marginal propensity to consume, the marginal propensity to import, and the income tax rate influence the multiplier?

Q4 How do fluctuations in autonomous expenditure influence real GDP?

Q5 How does a change in the price level influence the AE curve and the AD curve?

Q6 If autonomous expenditure increases with no change in the price level, what happens to the AE curve and the AD curve? Which curve shifts by an amount that is determined by the multiplier and why?

Contact chat support/Whatsapp chat to get a solution for the above question.

Dot Image
Tutorials for this Question
  1. Tutorial # 00753103 Posted By: dr.tony Posted on: 03/11/2020 09:15 AM
    Puchased By: 2
    Tutorial Preview
    The solution of If real GDP and aggregate expenditure are greater than equilibrium...
    Attachments
    If_real_GDP_and_aggregate_expenditure_are_greater_than_equilibrium.ZIP (18.96 KB)

Great! We have found the solution of this question!

Whatsapp Lisa