Equilibrium volume implies such volume of a proizvodyostvo at which equality of cumulative expenses and volume of the made products is provided. It is also called equilibrium GDP (or the output) which includes cumulative expenses which are sufficient for realization of a certain volume of production activity.
Instruction
1. Determine equilibrium GDP by a formula: GDP = AE where the total cost of the made products is equal to the sum of cost of the realized goods. In turn, AE = C+ I& therefore it turns out: GDP = With + I&. This formula can be applied provided that all made goods are bought up, that is there are no surplus and deficiency of products.
2. Construct the schedule in order that the situation was more visually presented. A vertical axis call AE, and horizontal GDP. Then according to the values which are available for you, transfer them to the schedule. At the same time each point which is on a bisector 0B will characterize a situation when all made products of firm completely are sold, that is each its point will show equality of AE and GDP. In other words, 0B is geometrical location of points of macroeconomic possible balance. At creation of the schedule of the actual cumulative expenses, it is necessary to summarize two functions — investments and consumption. As I& is equal to const, the schedule of AE will turn out with line shift About (expenses). Make a value projection (the point noted on graphics) to an axis of volume of the made products, so you receive value of ravnovesyony volume.
3. Pay attention to the mechanism at which balance was reached. If cumulative expenses were less than the volume of the released products (AE GDP in firm can be observed a trend that expenses are made more, than is issued goods. Therefore, commodity stocks will gradually be reduced, and it can stimulate the enterprise to accumulation of volume of production to the level of equilibrium volume.
4. Calculate equilibrium volume on a flow of income. Here it is necessary to consider that a part of income which is earned by firm is preserved. Therefore, these savings, represent soyoby certain withdrawals from the total amount of income therefore GDP appears the bigger size, than expenses (With