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Author Question: Explain the difference between the following two expressions: Y = C(Yd) + I + G + CA(EP /P, Yd) and ... (Read 37 times)

karateprodigy

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on: Jun 30, 2018
Explain the difference between the following two expressions: Y = C(Yd) + I + G + CA(EP /P, Yd) and Y = C + I +G + CA
 
  What will be an ideal response?

Question 2

Which of the following are examples of goods that have been subject to voluntary export restraints?
 
  A) Japanese cars and Chinese solar panels
  B) Belgian chocolates and French wines
  C) French wines and cheeses
  D) Japanese sushi and German cars
  E) Taiwanese electronics and Canadian barley


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kishoreddi

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Reply #1 on: Jun 30, 2018
Answer to Question 1

The first one represents a behavioral equation and thus may express equilibrium condition for the output market or the aggregate desired demand for output. The second equation is only an identity that is always true.

Answer to Question 2

A


karateprodigy

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Reply 2 on: Jun 30, 2018
Excellent

kishoreddi

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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