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Unformatted text preview: What is demand in this case? What is the change in inventories in this case? What happens to output? Show this in your graph in (b). (e)Suppose there is a decrease in autonomous investment of 36 widgets. (Or $36 in constant dollars), I = -36 widgets. What is the change in equilibrium output? Find the exact numerical change and show how to find the change graphically. (f)Suppose there is a tax cut of 48 widgets (Or $48 constant dollars). T= -48 widgets. What is the change in A ? What is the change in equilibrium output?...
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This note was uploaded on 12/09/2009 for the course ECON 2006 taught by Professor Rdcothren during the Spring '08 term at Virginia Tech.
- Spring '08