What is the impact of the following on AD and AS, as well as equilibrium price level and the level of real GDP? Use diagrams.Explain
Explain the following: Depict graphically the equilibrium real GDP for a private closed economy using both expenditure-output and leakage-injection approach. Now add export and import and determine the new point of equilibrium and explain what happens to the slope of S+M and AE schedule. Given MPS=.2 and MPM=.2 in order to increase real GDP by […]