answersLogoWhite

0

In the Keynesian Cross model, changes in autonomous consumption can affect equilibrium output. Autonomous consumption refers to the amount of consumption that occurs regardless of income levels. If autonomous consumption increases, it will shift the consumption function upwards, leading to higher equilibrium output. Conversely, if autonomous consumption decreases, it will shift the consumption function downwards, resulting in lower equilibrium output. The specific equation of the consumption function will determine the exact impact of changes in autonomous consumption on equilibrium output in the model.

User Avatar

AnswerBot

6mo ago

What else can I help you with?

Continue Learning about Economics

When producers supply more equilibrium price will?

When producers supply more of a good or service, the equilibrium price typically tends to decrease. This is because an increase in supply, assuming demand remains constant, leads to an excess of goods in the market. As a result, sellers may lower prices to attract buyers, thus moving the market toward a new equilibrium at a lower price point.


Suppose government imposed a minimum wage above equilibrium wage Assuming nothing else changes what do you expect to happen to the resulting shortage of jobs as time progresses?

pikachu


Why does all of the savings in the economy create an equal amount of investment spending according to neoclassical theory and Keynesian model?

In neoclassical theory, savings provide the funds necessary for investment, as they are channeled through financial markets to businesses seeking to invest in capital. This creates a direct link where all savings translate into investment spending, assuming full employment and efficient capital allocation. Conversely, the Keynesian model emphasizes that while savings can lead to investment, they may not always match due to factors like demand fluctuations; thus, savings can sometimes lead to a decrease in overall economic activity if they are not spent. Ultimately, both theories recognize a relationship between savings and investment, but they differ in the mechanisms and conditions under which this relationship holds true.


What happens to the quantity of lemons demanded as the price increases?

As the price of lemons increases, the quantity of lemons demanded typically decreases. This relationship is described by the law of demand, which states that consumers tend to buy less of a good when its price rises, assuming all other factors remain constant. Higher prices may lead consumers to seek alternatives or reduce their overall consumption of lemons.


As price falls quantity demanded?

increases assuming cetaris peribus

Related Questions

Is it harmful to drink well water after drinking distilled water for a number of years?

No, it is not harmful - assuming your well water has been tested for human consumption.No, it is not harmful - assuming your well water has been tested for human consumption.


What is the power consumption of the circuit, assuming a short-circuit and an open-circuit between A and BWhich resistance RL can you use such that the power consumption is the average of these two extreme cases?

here is the picture


What would the equilibrium concentration of glucose-6-phosphate be under cellular conditions of glucose equals P equals 5mM?

Assuming glucose-6-phosphate is in equilibrium with glucose and phosphate, the equilibrium concentration of glucose-6-phosphate would also be 5mM. This is based on the principle of mass action and the equilibrium constant of the reaction between glucose, phosphate, and glucose-6-phosphate.


Assuming that the reaction is at equilibrium what effect does the addition of a catalyst have on the equilibruim?

a catalyst lowers the activation energy for both the forward and reverse reaction. however, it does not change the potential energy of the reactants or products. it also does not affect the heat of reaction (delta h)


When producers supply more equilibrium price will?

When producers supply more of a good or service, the equilibrium price typically tends to decrease. This is because an increase in supply, assuming demand remains constant, leads to an excess of goods in the market. As a result, sellers may lower prices to attract buyers, thus moving the market toward a new equilibrium at a lower price point.


Suppose government imposed a minimum wage above equilibrium wage Assuming nothing else changes what do you expect to happen to the resulting shortage of jobs as time progresses?

pikachu


Does bounty have animal fat in it?

Assuming you're talking about the chocolate bar - no it doesn't. It has a 'V' sign on the wrapper - indicating it's suitable for consumption by vegetarians.


What happen when opposite forces acting on an object are balanced?

Assuming this is a physics question, when all the forces acting on an object are balanced, the object is in equilibrium. For example, when a car is at a constant velocity, with no acceleration, all the forces are equal.


What is the effect of pressure and concentration on Kc and Kp values?

Kc is the equilibrium constant of a chemical reaction related to concentrations. Kp is the equilibrium constant of a chemical reaction related to pressures. Generally, in normal conditions the effect of temperature is not so important.


What happens when the thrust force is equal to the drag force?

When the thrust force is equal to the drag force, the object will maintain a constant velocity (assuming no other forces are acting on it). This state is known as dynamic equilibrium, where the forces are balanced and there is no acceleration.


What is probably enough of this fossil fuel to last another 200 years?

It is difficult to provide an exact timeframe, as it depends on various factors such as consumption rates and technological advancements. However, estimates suggest that there may be enough coal reserves to last around 200 years, assuming current consumption rates.


What is fuel consumption comparison of jet engine aircraft on one engine inoperative at MCT and two engines at normal cruise thrust?

The fuel consumption improves on only one engine since the engine speed is higher thus higher compression thus higher efficiency (assuming altitute remains teh same).