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problem 1) describe and state the multiplier effect.

problem 2) describe the relationships between multiplier and the MPS and the MPC.

problem 3) describe the net export schedule.

problem 4) Describe the impact of positive (or negative) net exports on aggregate expenditures and the equilibrium level of real GDP.

problem 5) Describe the effect of increases (or decreases) in exports on real GDP.

problem 6) Describe the effect of increases (or decreases) in imports on real GDP.

problem 7) describe how government purchases affect equilibrium GDP.

problem 8) describe how personal taxes affect equilibrium GDP.

problem 9) Describe what you mean by balanced-budget multiplier and why it equals 1.

problem 10) Identify a recessionary gap and describe its effect on real GDP.

problem 11) Identify the inflationary gap and describe its effect.

problem 12) Describe the relationship between concept of recessionary gap and the Great Depression or Japan’s recession.

problem 13) Describe the relationship between the Vietnam era inflation and inflationary gap concept.

problem 14) prepare down four limitations of the aggregate expenditures model.

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M97888

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