Unit IV Assessment



Unit IV Assessment

Question 1: Aggregate demand is derived by the formula: Y=C+I+G+NX, so consumption expenses, investment expenses, governmental purchase, and net exports will decide the curve of aggregate demand. The curve also can move towards right as the financial system develops. When the curve moves right, the amount of yield required for a given pricing level increases. Thus, a shift to the right presents financial development.

Question 2

Consumption function shows the association involving the stages of non-refundable earnings that customers have (horizontal axis of the grid) and the level that they expend (vertical axis).  The graph has two ...