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Aggregate Demand Macroeconomic Assignment Help
Expenditures model.
a. List and thoroughly explain the three reasons the Aggregate
Demand curve is downward sloping.
i. In your explanation, please start with an increase in prices and
work through to a decrease in AD.
b. List and explain in detail, the components of Aggregate
Demand and explain each of their determinants.
i. You studied the 4 components. List and explain them and under
each list and explain the determinants of each. Aggregate Demand Macroeconomic Assignment Help
7. The basic macroeconomic relationships introduced a number of
key concepts. Please review the topic called Basic
Macroeconomic Relationships.
a. Please explain in detail the relationships between income,
consumption, savings, and GDP.
i. Define each
ii. Explain the relationship between these items.
b. Please explain in detail the relationships between interest
rates, expected rates of return, investment, and GDP. Be
specific and be thorough.
i. All of the necessary info is provided in the slides and audio
lectures Aggregate Demand Macroeconomic Assignment Help
c. Please explain the concept of the multiplier, including:
1. What information is required to calculate the
spending multiplier
a. Refer to the slides, the info is there. Look closely –
don’t miss this!
2. List and explain the 3 different multipliers that
we discussed.
a. Again, refer to the slides, it’s all there.
3. Explain in detail how the multiplier works to
impact GDP. Be specific!
a. Use the chart from the slide set as the basis of your
explanation. Start with the injection of money into
the economy and then how that affects household
income and then spending via the mpc. Go on to
discuss the rounds of spending, etc. and how the
ultimate impact on gdp is amplified by the
multiplier effect
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