macroeconomics

Title: macroeconomics
Category: Law & Government / Government & Politics
Details: Words: 982 | Pages: 4.2 (approximately 235 words/page)

macroeconomics

1) At first we choose a point in quadrant I. Let us call this point as “B”. Now let us look at the Y (national income) and I (interest rate) at point B and compare it with point “C”. I Y B i1 Y1 C i1 Y2 Same Y1*Y2 As we see from the diagram, the national income at point C is greater than the national income at point B. We also know that money …showed first 75 words of 982 total…

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…showed last 75 words of 982 total…point M than point K. Because of aggregate demand * aggregate supply we have excess demand in goods market. This shows that if a point is selected in quadrant IV there is excess supply in money market and excess demand in goods market. If we put the results in a table; Quadrant Money Market Goods Market I Excess Supply Excess Supply II Excess Demand Excess Supply III Excess Demand Excess Demand IV Excess Supply Excess Demand

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