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at the equilibrium level of GDP + formula
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∙ 14y ago
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What is equilibrium GDP?
In the short run, equilibrium GDP is the level of output at which output and aggregate expenditure are equal
If an unintended increase in business inventories occurs at some level of GDP then GDP?
is too high for equilibrium
How equilibrium of price level and real GDP is determined?
The answer is AJ Sanders
How do you calculate the equilibrium level of consumption?
you first have to culculate equilibrium level of income.
What will happen to the equilibrium price level and the real GDP if the aggregate demand decreases and aggregate supply decreases?
The equilibrium price level increases, but the real GDP change depends on how much aggregate demand and aggregate supply change by.
What is equilibrium GDP?
In the short run, equilibrium GDP is the level of output at which output and aggregate expenditure are equal
If an unintended increase in business inventories occurs at some level of GDP then GDP?
is too high for equilibrium
How do you calculate the equilibrium level of consumption?
you first have to culculate equilibrium level of income.
How equilibrium of price level and real GDP is determined?
The answer is AJ Sanders
What will happen to the equilibrium price level and the real GDP if the aggregate demand increases and aggregate supply decreases?
The equilibrium price level increases, but the real GDP change depends on how much aggregate demand and aggregate supply change by.
What will happen to the equilibrium price level and the real GDP if the aggregate demand decreases and aggregate supply increases?
The equilibrium price level increases, but the real GDP change depends on how much aggregate demand and aggregate supply change by.
What will happen to the equilibrium price level and the real GDP if the aggregate demand decreases and aggregate supply decreases?
The equilibrium price level increases, but the real GDP change depends on how much aggregate demand and aggregate supply change by.
Are unplanned changes in inventories rising falling or constant at equilibrium GDP?
They are constant at equilibrium GDP.
Does equilibrium GDP occur at full employment GDP?
Yes
Why must saving equal planned investment at equilibrium GDP in the private closed economy?
Saving must equal planned investment at equilibrium GDP in the private closed economy because leaking of saving that exceeds the injection of investment causes a level of GDP that cannot be sustained. Having a leaking of saving that is lower than the injection of investment causes the GDP to drive upward. In either case is bad to not have them at equilibrium.
What effect on real GDP does increased saving by households and businesses have on the equilibrium level of real GDP?
More savings produces greater additions to capital per hour of labor, raising real GDP per person.
Why does equilibrium real GDP occur where C plus Ig equals GDP in a private closed economy?
The equilibrium and the real GDP usually occurs where C plus LG equals GDP in a private closed economy because of the balance in trade.
