What assumptions are made concerning wages and prices in a classical economic model?
What will be an ideal response?
Wages and prices adjust freely to changes in supply and demand.
Economics
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You are given the following information on the macroeconomy:
Consumption: 200 + 0.75Y Investment: 100 + 0.10Y Government Spending 500 Exports 100 Imports 50 + 0.25Y Compute the equilibrium level of income, the size of the multiplier, and the change in equilibrium income for an increase in autonomous consumption of $50 million.
Economics
An autonomous increase in money demand, other things equal, shifts the ________ curve to the ________
A) IS; right B) IS; left C) LM; left D) LM; right
Economics