His Eminence Lord Poppington II
proverb:the fish who eats most dies still too
macro based question approach w/ aggregate expenditure model
Suppose that government spending, G, has an
endogenous component that is negatively related to Y (income) in
Australia but positively related to Y in China. i.e., Ceteris
paribus, would a given change in autonomous
expenditure – say, an increase in I (autonomous income) equal to 1% of GDP –
cause a larger percentage increase in Y in Australia or
China? Explain. Be sure to show your working.
can't figure this
Suppose that government spending, G, has an
endogenous component that is negatively related to Y (income) in
Australia but positively related to Y in China. i.e., Ceteris
paribus, would a given change in autonomous
expenditure – say, an increase in I (autonomous income) equal to 1% of GDP –
cause a larger percentage increase in Y in Australia or
China? Explain. Be sure to show your working.
can't figure this