1. What is the space of analysis of the multiplier model? What is the significance of...

1. What is the space of analysis of the multiplier model? What is the significance of the 45 degree line in the Aggregate Production curve? Draw an aggregate production curve.

3. What is the slope of the Aggregate Expenditure function? What is its significance?

4. Show equilibrium in the Keynesian multiplier model. Identity the stability of equilibrium using the notion of unintended inventory changes.

5. Write the formula for the multiplier and identify the algebraic condition of the change in aggregate expenditure with respect to the change in real income.

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Rahul Sunny answered 1 year ago

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