Answer:
The correct option is D.
Explanation:
Demand curve is a curve which is depicted in the form of graph and the relationship among the price of a commodity and the quantity of that commodity will be demanded at that price.
Loanable funds are those funds or income of people which they choose to save and lent out instead of using for own consumption.
The demand curve shifts due to change in the price and that causes change in quantity demanded. Shift of demand curve from D1 to D2 means that there is an increase in demand for the loanable funds and this increase is originate from people who have extra income and that they want to lent out.
Therefore, the correct option is D
Answer:
Equilibrium GDP = C+ I+ G+ X
Where: Y = GDP
C = Ca = a+bYd
I = Ig
G = G
X = Xn
Yd = Y-T
T = 0.2Y
Y = C+ I+ G+ X
Y = a + bYd + I +G + X
Y = a + b(Y-T) + I +G + X
Y = a + bY - bT + I +G + X
Y = a + by - b(0.2Y) + I +G + X
Y = a + bY - 0.2Yb + I +G + X
Y = a + 0.8Yb + I +G + X
Y - 0.8Yb = a + I +G + X
Y(1 - 0.8b) = a + I +G + X
Y = (a + I +G + X)/(1 - 0.8b)
That is the equilibrium GDP is Y = (a + I +G + X)/(1 - 0.8b)
Explanation:
Equilibrium GDP is also called equilibrium level of national income. This is the condition that must prevail for planned expenditure to exactly equals planned income or output in an economy. this is represented by the general equation of Y = C+ I+ G+ X-M but for the purpose of this question M which represent import was not introduced.
The consumption function of C = Ca = a+bYd is a Keynesian consumption function, it shows aggregate planned expenditure by household
Ig represents investment expenditure of the firm
Xn represents export while
G represents government expenditure on goods and services
T represents tax which varies with income level
Answer:
The correct answer is: renegotiate.
Explanation:
When a contract between two parties take place the most common actions to take is to negotiate every part of the contract in order to place both parties in a succesfull situation because if any of the parties has a disagreement in any term of the contract then that party will be in a least favorable situation than the other. The primarily thing to do is to establish terms that conform to all the parties involved. Therefore that <u>if a clause is not accepted by one party then the both should renegotiate</u> the terms established in order to happily agree in a medium point.
