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Unformatted text preview: influence on the market price Economists use the supply and demand model to analyze competitive markets GDP measures total income of everyone in the economy also total expenditure of the economy output of g&s Income equals expenditure GDP Consumption, Investment,Government Purchases, Net Exports y=c + i + g +nx D increases = Price and Quantity increase D decreases = Price and Quantity decrease S increases = Price decreases and Quantity increases S decreases = Price increases and quantity decreases...
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This note was uploaded on 05/25/2011 for the course ECON ECON 201 taught by Professor Amsler during the Spring '11 term at Michigan State University.
- Spring '11