Consider the long-run theory of investment, saving, and growth. In the long-run version of our macro model (with real GDP equal to Y"), the equilibrium interest rate is determined where O a. desired saving equals desired consumption. O b. the nominal price level equals the real price level. Oc aggregate demand equals aggregate expenditure. O d. desired consumption equals desired investment. O e. desired national saving equals desired investment.

Consider the long-run theory of investment, saving, and growth. In the long-run version of our macro model (with real GDP equal to Y"), the equilibrium interest rate is determined where O a. desired saving equals desired consumption. O b. the nominal price level equals the real price level. Oc aggregate demand equals aggregate expenditure. O d. desired consumption equals desired investment. O e. desired national saving equals desired investment.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Potential GDP is O a. a measure of the short term fluctuations in real GDP. O b. another name for nominal GDP. O c. equal to the maximum amount of goods and services that can be produced at any given time. O d. the level of output produced when the economy is fully employed. O e. another name for real GDP.
Economists use the neoclassical growth model to explain fluctuations in the business cycle because can; the model shows how economic growth changes when the factors of production (capital, labour force and technology) change. O cannot; the model does not take into account technology changes. O cannot; the model only explains what determines the long term trends in output or output per labour. O can; as a long-run model, it captures business cycles over very long periods of time. O cannot; the model is more focused on government activity than private sector activity. O O
ctrl tab shift ↑ caps lock REAM Stream esc Question 3 K →1 Moving to another question will save this response. fn Which of these is among the principal determinants of economic growth? O the financial system stabilization policy the government budget deficit the central bank inflation A Moving to another question will save this response. O Type here to search ? (2 2 N W S f3 # 3 alt x f4 101 LA 4 Ai E R C % LL LO 5 T 6 G f7 hp & Y 7 H fg a V B N CO 19 8
What likely occurred during 2018 if nominal GDP did not change and real GDP decreased, relative to the year 2017? Select one: O a. Total production of goods and services in the economy did not change in 2018. cross out O b. The economy experienced deflation during 2018. cross out cross out O c. The price level did not change during 2018. O d. Total production of goods and services in the economy increased during 2018. cross out cross out O e. The economy experienced inflation during 2018
3. Assume that production function is Cobb- Douglas type, namely Yi = zika i N 1-a i (1) where i = 0, 1 indicates the two periods of the model. Derive the formula for the investment demand given the model parameters and other endogenous variables, like real wage and employment. Calculate al ad . How does the depreciation rate influence investment? Explain