Refer to problem 1. The equilibrium level or saving is *600200700580Refer to problem 1. Suppose that potential GDP is $740O, by how muchinvestment should change in to close the gap? *O 148040O 140O 814 paper a pen and a calculator in order to solve the foProblem 1The various expenditure categories within the economy are:C = 600+ 0.8Yd| - 800G = 600NX = 0T = 700Refer to problem 1. Equilibrium Real GDP is *

Given C = 600 + 0.8Yd I = 800 G = 600 NX = 0 T = 700.

Answered: 200 700 580 Refer to problem 1. Suppose…

200 700 580 Refer to problem 1. Suppose that potential GDP is $740O, by how much investment should change in to close the gap? * O 1480 40 O 140 O 814

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Refer to problem 1. The equilibrium level or saving is *
600
200
700
580
Refer to problem 1. Suppose that potential GDP is $740O, by how much
investment should change in to close the gap? *
O 1480
40
O 140
O 814

paper a pen and a calculator in order to solve the fo
Problem 1
The various expenditure categories within the economy are:
C = 600+ 0.8Yd
| - 800
G = 600
NX = 0
T = 700
Refer to problem 1. Equilibrium Real GDP is *

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36
QUESTION 6 Potential GDP Aggregate expenditure AE, 45° Y. Real GDP (Y) When real GDP is greater than Yo in the diagram above: O A. - inventories will decrease OB. ·Aggregate expenditure will be less than Real GDP OC. Aggregate expenditure will be equal to Real GDP OD. O D. inventories will increase QUESTION 7 Y G Xn $1,000 $1,400 1,400 1,400 1,400 1,400 $0 $800 -$200 2,500 5,000 7,500 10,000 2,300 3,800 5,300 6,800 1,000 1,000 1,000 1,000 -200 -200 -200 -200 Suppose you are given the data in the table above for a hypothetical economy. All data are in billions of dollars. Yis actual real GDP, and C, Ip, G, and Xn are the consumption, planned investment, government purchases, and net exports components of aggregate expenditures, respectively. Calculate the equilibrium GDP (give your answer in billions of $) Aggregate Expenditure
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6. Over time, increases in Potential GDP are the result of O A. inflation O B. increased government spending O C. lower taxes O D. increases in technology
Suppose the current equilibrium GDP is less than potential GDP. Which of the following actions could the government take to close the output gap? Select one or more: O a. No action is necessary O b. Decrease expenditures C. Decreases taxes Od. Increase taxes O e. Increase expenditures
Suppose the economy is such that the current GDP is great than potential GDP. If the government does not act, which of the following would we expect to occur? Select one or more: O a. Price levels will decrease Ob. GDP will increase O c. Price levels will increase O d. No effect of GDP e. GDP will decrease O f. No effect on price levels
8
Government purchases 30 Consumption 100 Investment spending Exports Imports Wages Interest billions of dollars ($) O $370 billion. 50 O $160 billion. O $130 billion. $310 billion. 40 Government purchases 60 20 190 130 According to the information in table, GDP =