Macroeconomics Coursework Example | Topics and Well Written Essays - 250 words - 1

Macroeconomics - Coursework Example Upon shifting the curve W, the new equilibrium point will likely be at R. This is an indication of injection of income into the market cycle by either the households or the government through various spending activities. An excess in the withdrawals more than the injections will imply that there shall be less investments. Consequently, an excess in the withdrawals implies that households are saving some of their income and not spending it; thus, leading to a reduction in the circular flow of income (Carlin & Soskice, 2006). An increase in the government spending would imply increase in injections that would result in an upward shift by UT. Equilibrium will now be attained at point U being the point where the new injections curve will intersect with the withdrawals curve (Carlin & Soskice, 2006). As a result, there will be a rise in the national income by an amount of BC denoted by J’. a. Find data for nominal GDP at US dollar current prices with a base year of your choice and calculate real GDP for Australia, France, Germany, Greece, Ireland, Japan, UK, and USA from 2005 to 2014. Present the data on a