AE = 2,000 + ½ Y a) Each row of the table below provides a combination of real GDP and aggregate expenditure that lies on the aggregate expenditure line. Using the information provided above, complete the table below. Real GDP (Y) Aggregate Expenditure (AE) $2.000 $0 $1,000 $2,000 $3,000 $4,000 $5.000 $3,000 $4,000 b) At what level of real GDP is this economy in macroeconomic equilibrium? c) Suppose that real GDP is currently $1,000. What is the value of aggregate expenditure? d) Suppose that real GDP is currently $1,000. Is real GDP greater than or less than aggregate expenditure? By how much? e) Suppose that real GDP is currently $1,000. What does your answer to Part D say about whether there is an unexpected increase or decrease in inventories. How big is this unexpected change? f) Suppose that real GDP is currently $5,000. What is the value of aggregate expenditure? g) Suppose that real GDP is currently $5,000. Is real GDP greater than or less than aggregate expenditure? By how much? h) Suppose that real GDP is currently $5,000. What does your answer to Part G say about whether there is an unexpected increase or decrease in inventories. How big is this unexpected change?

AE = 2,000 + ½ Y a) Each row of the table below provides a combination of real GDP and aggregate expenditure that lies on the aggregate expenditure line. Using the information provided above, complete the table below. Real GDP (Y) Aggregate Expenditure (AE) $2.000 $0 $1,000 $2,000 $3,000 $4,000 $5.000 $3,000 $4,000 b) At what level of real GDP is this economy in macroeconomic equilibrium? c) Suppose that real GDP is currently $1,000. What is the value of aggregate expenditure? d) Suppose that real GDP is currently $1,000. Is real GDP greater than or less than aggregate expenditure? By how much? e) Suppose that real GDP is currently $1,000. What does your answer to Part D say about whether there is an unexpected increase or decrease in inventories. How big is this unexpected change? f) Suppose that real GDP is currently $5,000. What is the value of aggregate expenditure? g) Suppose that real GDP is currently $5,000. Is real GDP greater than or less than aggregate expenditure? By how much? h) Suppose that real GDP is currently $5,000. What does your answer to Part G say about whether there is an unexpected increase or decrease in inventories. How big is this unexpected change?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

4. In the context of simultaneous equations modelling, which of the following statements is TRUE concerning an exogenous variable? (a) The values of exogenous variables are determined within the system (b) The exogenous variables are assumed to be fixed in repeated samples (c) Reduced form equations will not contain any exogenous variables on the RHS (d) Reduced form equations will contain only exogenous variables on the LHS.
I need the answer as soon as possible
1 1 a) Let A = 1 -1 -1 1 (i) Compute the value of det (A). (ii) For what values of x will the matrix be singular? b) Write down the quadratic form that corresponds to the following matrix. 2 4 2 -1 -3 .4 -3 1
C. Suppose your neighbor is a physics major who also races motorcycles, and she tells you that horsepower can be expressed in terms of the following equation: H = MDA/S where M=mass, D-distance, A=acceleration and S and H are as defined above. Based on this conversation with your neighbor, you decide to change the functional form of the relationship to include 1/H rather than H as an explanatory variable because that's the appropriate theoretical relationship between the two variables. Estimate the above equation, substituting 1/H for H. Which of the two models do you prefer and why?
Evaluate the integral. (Use C for the constant of integration.)
Is the underground economy being calculated? If so, is there a certain methodology that is being used?
Use graphical method to solve the following LPP: Maximise Z = x +4y Subject to the constraints: x + y < 1 2x + 2y 2 4 *2 0, y 2 0
Marketing surveys conducted by the sales manager for a company determined that 3,000 power drills could be sold for $60 each, but 4,000 drills could be sold for $50 each. (a) If the two data points were plotted on a coordinate system with the number of drills sold on the horizontal axis and the price of each drill on the vertical axis, what is the slope of the line between the two points? (b) Write a sentence that explains the result in part (a) in the context of this problem. For every additional drill sold, the price per drill (in cents) decreases by cent(s). (c) Assuming the trend in part (a) continues, how many drills can be sold for $56? drills
Graph the function C=50+0.8Y and give economic interpretations of the elements of the equation.
Question 2 (a)
Given the functional relationship: y = 14x5/x2 find the value of y when x = 1.5
1. A Travel-Cost Method Now it is time for your first consulting job as an environmental economist. The Forest Service would like to know whether they should preserve some national forest land, previously slated to be logged, for hiking. You are helping do a travel-cost analysis to estimate the annual benefits of hiking in this area. Survey data has been gathered from 500 hikers who visited the forest last year. This forest did not charge an entrance fee. Using a statistical technique called regression analysis, you have controlled for differences in income, employment status, age, and other important factors that might affect the number of hiking trips taken. Taking these factors into account, you have developed the following relationship: Zone 1 2 3 Population in zone 1,000 3.000 2,000 Cost Per Hiking Trip Per Person 20 40 80 Hiking Trips Taken Per Zonal Person Per Year 8 6 2 where cost includes gas, tolls, fares, hotels, entry fees, and the value of time spent traveling. a. Graph a…