4. a) Draw a TP-TE (or Keynesian cross) graph for South Africa. Suppose RealGDP is $425 billion while the Real GDP where TE=TP is $475 billions.total,Expenditure(billions)TE-THHELthI145425Q2475Q1TP-TEtotalProduction(billions)b) If Real GDP is $425 billion, what will happen to inventories, to firm'sproduction and to the Real GDP?Inventories will decrease andProduction will increaseGDP increases to $475 billionand real

4) The Keynesian cross is a basic graphical representation that depicts the causal relationship…

4. a) Draw a TP-TE (or Keynesian cross) graph for South Africa. Suppose Heal GDP is $425 billion while the Real GDP where TE=TP is $475 billions. total Expenditure (billions) TE, TH HL th 45 425 Q2 475 Q1 TP -TE total Production b) If Real GDP is $425 billion, what will happen to inventories, to firm's (bilions) production and to the Real GDP? and and real Inventories will decrease Production will increase GDP increases to $475 billion

4. a) Draw a TP-TE (or Keynesian cross) graph for South Africa. Suppose Heal GDP is $425 billion while the Real GDP where TE=TP is $475 billions. total Expenditure (billions) TE, TH HL th 45 425 Q2 475 Q1 TP -TE total Production b) If Real GDP is $425 billion, what will happen to inventories, to firm's (bilions) production and to the Real GDP? and and real Inventories will decrease Production will increase GDP increases to $475 billion

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

4. a) Draw a TP-TE (or Keynesian cross) graph for South Africa. Suppose Real
GDP is $425 billion while the Real GDP where TE=TP is $475 billions.
total,
Expenditure
(billions)
TE-TH
HEL
th
I
1
45
425
Q2
475
Q1
TP
-
TE
total
Production
(billions)
b) If Real GDP is $425 billion, what will happen to inventories, to firm's
production and to the Real GDP?
Inventories will decrease and
Production will increase
GDP increases to $475 billion
and real

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