bba103 (1 Viewer)

[boinkBOINK]

ahh anyone started this assignment?
any help? =\
so stuck
dont know where to start

 

[clairegirl]

hey add me on msn... or maybe u already have.. im not sure lol ac_Sebastian@hotmail.com, i'm only starting to look at it... and this is what i get so far

anyway... the first question, i'm seriously clueless but maybe if i talk about it..and WE ALL talk about it.. we'll be able to friggen get a start to it, anyone who did bba103 plzzzzzz HELP!!

Critically evaluate the following statement in relation to a two-sector (households and firms) no government, closed economy, Income Expenditure model:

“Whilst the identities ensure that planned and actual values of key variables are equal, regardless of the level of aggregate income, it is only at the equilibrium level of output that realized income, output and expenditure are equal and realized investment and saving are equal”​

Okay so first of all the income expenditure model is A macroeconomic model, which captures the essence of Keynesian economics, based on the equality between total income generated from GDP and total expenditures on GDP. Since it's a closed economy.... without govt, I’m assuming are

Y= C + I

The identities mentioned in the lectures: (im guessing the question is talking about these identities)

1st identity Y = Ys = E
which is consumption+savings is equal to income (Y) = aggregate supply (Ys) = aggregate expenditure (E).

2nd identity S = I (savings is equal to investment, yeh big whoop, on its own it doesn't tell us about the equilibrium point)

Whilst the identities ensure that planned and actual values of key variables are equal, regardless of the level of aggregate income

is that because Ys = E (agg supply = agg expenditure)

okay does someone know how to relate these identities I just mentioned to:

Ø Plans for households are always realised i.e plans come true.
C planned = C actual
S planned = S actual
Ø Plans of firms are reinvestment in new buildings and machinery are always realised.

Or is the whole planned and actual thing talking about the whole Iunplanned and Iplanned thing and how if supply doesn’t equal demand thing, excess or unplanned run down causes a company to decrease or increase production

According to the income expenditure model, total output responds to the demand for it or in the words of Keynes, aggregate supply is driven by aggreage demand, not the other way around"

In our case C+I = aggregate demand = Ys
According to our 1st identity

Ohhh heyyy! Guys

I = planned + unplanned

Hrrmm anyway I don’t know if I had a point or not, looks writing what’s in my head didn’t come to a point..lol im tired.. im gunna sleep… I’ll do this again on Sunday.

What are your thoughts on this assignment guys? Mine = dropping business next semester!

 

[boinkBOINK]

that just went straight over my head claire
=\
*sigh

 

[Orange Juice]

this assignment kicked my ass back to front...
their saying 1.5 pages a question... thats like alot...

 

[boinkBOINK]

yea it is alot man
considering i dont know much
i can do it in a paragraph
meh

 

[Orange Juice]

dont understand q1 that is all...
i think i agree with the statment...

q2 part 2... dunno what to write... i think that in a closed economy a change in Co will be less than if it was an open econ...

 

[~ForAGoodCause~]

issit the same assignment as last yrs?

if it is then heres mine, i did pretty good i think ... only thing missing is the diagrams that i hand did.

 

[boinkBOINK]

OMG I HOPE IT IS
=\
*crosses fingers and prays

 

[boinkBOINK]

ahh its similar i guess =\
except for question 2
but thanks FAGC
now to make sense of this

 

[Orange Juice]

hahah for a good cause i used your reference cuz you gave me your macro questions but no answer...
do we really need to use references?
i still havnt started...

 

[boinkBOINK]

i havent either OJ
dont know what to do man

 

[adaskalopoulos]

Help wit BBA

Yeah hey does anyone know how to do question 2 b it is heaps confusing.
Thanks

 

[wallid]

Whilst the identities ensure that planned and actual values of key variables are equal regardless of the level of aggregate income??

can anyone tell me something about it...


is it only at equilibrium level that I = S ?> y?

 

[boinkBOINK]

tell me too =\

 

[fwuxed]

this assignment is gay

 

[Orange Juice]

ok im bout to start...
ive looked at q1...
is this statement like a agree or not type thing? cuz i thought planned and actual is only equal at equilibrium?