Question

In: Economics

What are the endogenous variables in a closed-economy ​model? ​(Select all that​ apply.) A. Aggregate output...

What are the endogenous variables in a closed-economy ​model? ​(Select all that​ apply.)

A.

Aggregate output

B.

Quantity of labour demanded

C.

Total factor productivity

D.

Market real wage

E.

Consumption

F.

Government spending

G.

Capital stock

H.

Taxes

I.

Quantity of labour supplied

Solutions

Expert Solution

In closed-economy one-period model the endogenous variables are c, Nd , Ns ,T, Y ,w.

c : consumption

Nd : Quantity of labour demanded

Ns : Quantity of labour supplied

T : Taxes

Y : Aggregate output

w : Market real wage

In the model exogenous variables are G, z, and K.

G : Government spending

z : Total factor productivity

K : Capital stock

Rahul Sunny answered 1 year ago
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