Consider the following AE function AE = 250+0.5Y+0.1(M/P) (1) Where AE is a desired aggregated expenditure, Y is a real
Posted: Fri Jul 01, 2022 7:56 am
- Consider The Following Ae Function Ae 250 0 5y 0 1 M P 1 Where Ae Is A Desired Aggregated Expenditure Y Is A Real 1 (21.21 KiB) Viewed 25 times
2. Plot the price against the national Income
Consider the following AE function AE = 250+0.5Y+0.1(M/P) (1) Where AE is a desired aggregated expenditure, Y is a real GDP, M is a private sectors nominal wealth and P is the price level.Suppose that M is constant with value of 6000 P M/P 1 2 3 4 30.00 5 6 AE 6000 AE250 +0.5Y