Question: Explain why, in the condition for equilibrium, aggregate demand equal aggregate supply would be same if we say total leakages must equal to total injections.

Explain why, in the condition for equilibrium, aggregate demand equal aggregate supply would be same if we say total leakages must equal to total injections.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Part one. 1. (4 pts.) Briefly define each of the components of Y = C + I + G + NX and give an example for each category of expenditure: (3 pts.) Do economists prefer Nominal GDP or Real GDP as the...

Please help.. 1. A situation when a person is able and willing to take up a job and gets employed, it is called- a. Employment b. Full Employment c. Under Employment d. Unemployment. 2. A situation...

Part A. Production Problem 1. Consider the Cobb-Douglas production function f(x,y) = 12x0.4y0.8. (A) Find the intensities (? and 1 ? ?) of the two factors of production. Does this firm have...

Answer all the questions clearly. 9. (5 pts.) Show on the axes below how the presence of trade unions can impact the structural rate of unemployment in a country: Wage (3 pts.) Considering the...

Question one. Question 1 Explain well. Use the Model of Demand and Supply to explain why the price of buffet dinners has decreased recently in Dhaka City. Your answer should include a well-labeled...

.. a good explanations on each question please 9. The consumption function shows the relationship between consumption and: Interest rates. Saving. Price level changes. Disposable income 10. At the...

CHAPTER 6 : PRODUCTION AND GROWTH 2. Suppose that society decided to reduce consumption and increase investment. A) How would this change affect economic growth ? B) What groups in society would...

In an economy, planned consumption is C 50 0.60Y and planned investment is _ I 70. (a) Find the equilibrium level of income. (b) Find the equilibrium level of consumption. (c) Find the equilibrium...

MicroeconomicsModule 2 Study Guide Notes It is recommended that your print and fill this study guide out as you work through each lesson. You will have an Assessment assignment that is due at the end...

ANSER ALLL QUESTIONS a. Suppose that the Federal Reserve wants to hold its federal funds rate target constant but banks' demand for reserves decreases at any given interest rate. When faced with this...

Two students, X and Y, forgot to put their names on their exam papers. The professor knows that these two students can do well on the exam with probabilities 0.8 and 0.4, respectively. After grading,...

What are the different kinds types of messages that advertisers can create to deliver various objectives?

Assume Gardner Corporation has the following information. View the information. Assume that the corporation has a calendar tax year and all of the corporation's taxable income was eligible for the...

How would you rank the level of Tesla s vertical integration compared to those of Ford Motor Company or General Motors.

16. Now put the areas you have ranked in order of priority and reflect on which values they correspond to in your value hierarchy.

14. Now reconcile what you answered to problem 15 with problem 13.

11. In what environment or contexts is it the value you want others to associate you with that the value can best be expressed in? Do you seek out these contexts to learn?