Create a graph for the aggregate expenditures (AE) model in Excel using the data from Table 1: A Private Closed Economy. (table 1 is in the attachment) tips: Remember, the 45degree line (also known as the Keynesian Cross) is a tool that shows how differences in aggregate expenditures and real GDP can affect business inventories which will affect future levels of real GDP. Aggregate expenditure and GDP are both function of consumption, investment, government spending, and net exports. So, the equations for the two are identical: Y = C + I + G + NX, and AE (aggregate expenditure) = C + I + G + NX For private closed economy the equation is: Y = C + I , and AE (aggregate expenditure) = C + I
This question has four parts, here is the fourth and final part.
1.4. Create a graph for the aggregate expenditures (AE) model in Excel using the data from Table 1: A Private Closed Economy. (table 1 is in the attachment)
tips:
Remember, the 45degree line (also known as the Keynesian Cross) is a tool that shows how differences in aggregate expenditures and real
So, the equations for the two are identical:
Y = C + I + G + NX, and AE (aggregate expenditure) = C + I + G + NX
For private closed economy the equation is:
Y = C + I , and AE (aggregate expenditure) = C + I
A country with a closed, private economy prohibits foreign economies from affecting domestic economic policies. In a world that is growing more and more international, this type of economy is getting harder to support. All goods are produced inside the boundaries of a single nation; there is no trade between the domestic economy and the economies of the surrounding countries. Generally, economies are created by governmental entities or people who reside inside a nation. In some cases, a private closed economy may be built on the principles of a market, capitalist, or command economy. In certain cases, the latter may occur since there aren't enough limited economic resources to share among all residents fairly. The money will subsequently be dispersed as required by the government agency or a person chosen by the general public. The government body might place strict restrictions on people operating in the economy in order to avoid dealing with other nations.
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