2. A tabular approach to Keynesian equilibrium The following table shows some information on a hypothetical economy. The table lists real GDP, consumption (C), investment (I), government spending (G), net exports (X-M), and aggregate expenditures (AE). In this problem, assume that investment, government spending, and net exports are independent of the economy's real GDP level. X- Unplanned Inventory Real GDP C I G M AE Investment Direction of Real GDP and Employment $400 $250 $90 $90 $10 $ -$40 $500 $90 $90 $10 $520 -$20 $600 $410 $90 $90 $10 $0 $700 $90 $90 $10 $680 $20 $ $570 $90 $90 $10 $760 $40 Using the numbers provided in the table, enter the correct numbers in the empty cells. Then, using the dropdown selection menus in the right-most column, indicate whether output will tend to increase, decrease, or remain in equilibrium at each level of real GDP in the table. (Note: The table uses negative numbers to indicate an unplanned inventory investment depletion and positive numbers to indicate an unplanned inventory investment accumulation.)
2. A tabular approach to Keynesian equilibrium The following table shows some information on a hypothetical economy. The table lists real GDP, consumption (C), investment (I), government spending (G), net exports (X-M), and aggregate expenditures (AE). In this problem, assume that investment, government spending, and net exports are independent of the economy's real GDP level. X- Unplanned Inventory Real GDP C I G M AE Investment Direction of Real GDP and Employment $400 $250 $90 $90 $10 $ -$40 $500 $90 $90 $10 $520 -$20 $600 $410 $90 $90 $10 $0 $700 $90 $90 $10 $680 $20 $ $570 $90 $90 $10 $760 $40 Using the numbers provided in the table, enter the correct numbers in the empty cells. Then, using the dropdown selection menus in the right-most column, indicate whether output will tend to increase, decrease, or remain in equilibrium at each level of real GDP in the table. (Note: The table uses negative numbers to indicate an unplanned inventory investment depletion and positive numbers to indicate an unplanned inventory investment accumulation.)
Chapter8: Relationships Among Inflation, Interest Rates, And Exchange Rates
Section: Chapter Questions
Problem 1QA
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![2. A tabular approach to Keynesian equilibrium
The following table shows some information on a hypothetical economy. The table lists real GDP, consumption (C), investment (I), government
spending (G), net exports (X-M), and aggregate expenditures (AE). In this problem, assume that investment, government spending, and net exports
are independent of the economy's real GDP level.
X-
Unplanned Inventory
Real GDP
C
I
G
M
AE
Investment
Direction of Real GDP and
Employment
$400
$250
$90
$90
$10
$
-$40
$500
$90
$90
$10
$520
-$20
$600
$410
$90
$90
$10
$0
$700
$90
$90
$10
$680
$20
$
$570
$90
$90
$10
$760
$40
Using the numbers provided in the table, enter the correct numbers in the empty cells. Then, using the dropdown selection menus in the right-most
column, indicate whether output will tend to increase, decrease, or remain in equilibrium at each level of real GDP in the table. (Note: The table uses
negative numbers to indicate an unplanned inventory investment depletion and positive numbers to indicate an unplanned inventory investment
accumulation.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4a29812a-1c33-4f53-b0f1-7a716a28c5fb%2F5ecbcdbd-69e8-40f4-93aa-f044dc4c2994%2F83zvka8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:2. A tabular approach to Keynesian equilibrium
The following table shows some information on a hypothetical economy. The table lists real GDP, consumption (C), investment (I), government
spending (G), net exports (X-M), and aggregate expenditures (AE). In this problem, assume that investment, government spending, and net exports
are independent of the economy's real GDP level.
X-
Unplanned Inventory
Real GDP
C
I
G
M
AE
Investment
Direction of Real GDP and
Employment
$400
$250
$90
$90
$10
$
-$40
$500
$90
$90
$10
$520
-$20
$600
$410
$90
$90
$10
$0
$700
$90
$90
$10
$680
$20
$
$570
$90
$90
$10
$760
$40
Using the numbers provided in the table, enter the correct numbers in the empty cells. Then, using the dropdown selection menus in the right-most
column, indicate whether output will tend to increase, decrease, or remain in equilibrium at each level of real GDP in the table. (Note: The table uses
negative numbers to indicate an unplanned inventory investment depletion and positive numbers to indicate an unplanned inventory investment
accumulation.)
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