Explain effect of increase in consumer spending on short-run, Microeconomics

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Explain effect of increase in consumer spending on short-run

The table below shows the aggregate demand and short-run aggregate supply schedules of a country in which potential GDP is $1050 billion :

Price levelReal GDP demanded
(billions of 2005 dollars)Real GDP supplied in the short run (billions of 2005 dollars)
10011501050
11011001100
12010501150
13010001200
1409501250
1509001300
1608501350

a.Does the country have an inflationary gap or a recessionary gap and what is its magnitude ?
b.Explain the effects of an increase in consumer spending on the short-run macroeconomic equilibrium.
c.Explain the effects of an increase in business investment on the short-run macroeconomic equilibrium.
d.Explain the effects of an increase in exports on the short-run macroeconomic equilibrium.

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Microeconomics: Explain effect of increase in consumer spending on short-run

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Microeconomics: Explain effect of increase in consumer spending on short-run

Reference No:- TGS054779

Recent Questions Asked Microeconomics

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Q : Explain effect of increase in consumer spending on short-run

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