Macroeconomics
If consumption is \$500 billion, investment is \$200 billion, government purchases are \$300 billion, and net exports are \$50 billion, what is the GDP?
If net exports decrease by \$5 billion and the multiplier is 3, what is the expected decrease in GDP?
What is the significance of the equivalence between aggregate expenditures and GDP in macroeconomic equilibrium?
What does the marginal propensity to consume indicate?
Why are investment, government purchases, and net exports considered constants in the aggregate expenditures model?
How do sticky prices contribute to the stability of the aggregate expenditures model?
How does the constant nature of investment, government purchases, and net exports simplify the aggregate expenditures model?
Why is consumption expected to increase with rising GDP?
What does the 45-degree line in the aggregate expenditures model graph represent?
