If, other things being equal, a price increase of good X increases the quantity demanded of good Y, then good Y is:

If there is a positive consumption externality, in a free market the product will then:

In a country, the following components of aggregate demand (AD) are given:

• Consumption (C) = £450 billion
• Investment (I) = £250 billion
• Government Spending (G) = £350 billion
• Net Exports (NX) = £75 billion
• Imports (M) = £120 billion

Calculate the exports (X) for the country.

Your answer is billion?

If demand is relatively price inelastic:

In a country, consumption is £500 billion and disposable income is £600 billion. Calculate the average propensity to consume (APC).

A country has a real GDP of £450 billion and a GDP deflator of 110. Calculate the nominal GDP for the year.

If the price elasticity of demand is – 2: