Macroeconomics
Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
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Chapter 28, Problem 26APA
To determine

Illustrate the effect of an increase in exports on the equilibrium real GDP in the short run on a graph.

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Draw the graph (aggregate supply and aggregate demand curves) of an economy that is in equilibrium.
What is income-expenditure equilibrium? Derive aggregate demand curve from income expenditure equilibrium when the price level is not changed.
Describe the volatility of government spending and net exports relative to that of GDP and suggest an explanation for the patterns you observe in the graph.
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