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DETERMINATION OF OUTPUT, EMPLOYMENT AND PRICE

Essay specific features

 

Issue:

Business

 

Written by:

Mariana S

 

Date added:

April 28, 2014

 

Level:

University

 

Grade:

B

 

No of pages / words:

3 / 628

 

Was viewed:

1232 times

 

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Essay content:

C + I + G + (X—M) = Y. Figure 29.2 shows what is known as the 45° diagram. National income is measured on the horizontal axis and total planned expenditure, at different levels of GDP is measured on the vertical axis. GDP is in equilibrium at Y level of GDP If all the output produced is sold there is no reason for producers to change their output...
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GDP is in equilibrium at Y level of GDP If all the output produced is sold there is no reason for producers to change their output. LEAKAGES =INJECTIONS:- Figure 29.3 can be used to derive another formula for the equilibrium condition. GDP will only be stable when the total planned injections are equal to the total planned leakages...
displayed 300 characters

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