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Title: DETERMINATION OF OUTPUT, EMPLOYMENT AND PRICE

Essay Details

Subject: Business
Author: Angel C
Date: September 25, 2013
Level: University
Grade: A
Length: 3 / 628
No of views: 0
Essay rating: good 0, average 0, bad 0 (total score: 0)

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C + I + G + (X—M) = Y. Figure 29.2 shows what is known as the 45° diagram. National income is measured on the horizontal axis and total planned expenditure, at different levels of GDP is measured on the vertical axis. GDP is in equilibrium at Y level of GDP If all the output produced is sold there is no reason for producers to change their output...

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GDP is in equilibrium at Y level of GDP If all the output produced is sold there is no reason for producers to change their output. LEAKAGES =INJECTIONS:- Figure 29.3 can be used to derive another formula for the equilibrium condition. GDP will only be stable when the total planned injections are equal to the total planned leakages...

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