4. a) Draw a TP-TE (or Keynesian cross) graph for South Africa. Suppose RealGDP is $425 billion while the Real GDP where TE=TP is $475 billions.total,Expenditure(billions)TE-THHELthI145425Q2475Q1TP-TEtotalProduction(billions)b) If Real GDP is $425 billion, what will happen to inventories, to firm'sproduction and to the Real GDP?Inventories will decrease andProduction will increaseGDP increases to $475 billionand real

4) The Keynesian cross is a basic graphical representation that depicts the causal relationship…

4. a) Draw a TP-TE (or Keynesian cross) graph for South Africa. Suppose Heal GDP is $425 billion while the Real GDP where TE=TP is $475 billions. total Expenditure (billions) TE, TH HL th 45 425 Q2 475 Q1 TP -TE total Production b) If Real GDP is $425 billion, what will happen to inventories, to firm's (bilions) production and to the Real GDP? and and real Inventories will decrease Production will increase GDP increases to $475 billion

4. a) Draw a TP-TE (or Keynesian cross) graph for South Africa. Suppose Heal GDP is $425 billion while the Real GDP where TE=TP is $475 billions. total Expenditure (billions) TE, TH HL th 45 425 Q2 475 Q1 TP -TE total Production b) If Real GDP is $425 billion, what will happen to inventories, to firm's (bilions) production and to the Real GDP? and and real Inventories will decrease Production will increase GDP increases to $475 billion

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter19: The Macroeconomic Perspective

Section: Chapter Questions

Problem 4SCQ: Without looking at Table 19.7, return to Figure 19.10. If we define a recession as a significant...

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