8Aggregate planned expenditure.(trillions of 2009 dollars)a715141516 17 18O#1445° lineless than $16 trillion.$16 trillion.more than $16 trillion.AE19In the above figure, equilibrium expenditure issome amount that cannot be determined without more information.Kk4

Aggregate planned expenditure refers to the total amount of spending that firms, governments, and…

Aggregate planned expenditure (trillions of 2009 dollars) 16 7 15 15 16 17 18 19 14 0 14 45° line O less than $16 trillion. O $16 trillion. In the above figure, equilibrium expenditure is more than $16 trillion. AE some amount that cannot be determined without more information. 4

Aggregate planned expenditure (trillions of 2009 dollars) 16 7 15 15 16 17 18 19 14 0 14 45° line O less than $16 trillion. O $16 trillion. In the above figure, equilibrium expenditure is more than $16 trillion. AE some amount that cannot be determined without more information. 4

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

8
Aggregate planned expenditure.
(trillions of 2009 dollars)
a
7
15
14
15
16 17 18
O
#
14
45° line
less than $16 trillion.
$16 trillion.
more than $16 trillion.
AE
19
In the above figure, equilibrium expenditure is
some amount that cannot be determined without more information.
Kk
4

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42
Planned AE (PAE, trillion $) 45° AE = Y PAE₂= 7+0.5Y PAE = 5 +0.5Y PAE = 3 +0.5Y Actual AE (GDP, Y, trillion $) Refer to a graph above. Suppose the the economy has the planned aggregate expenditure of PAE2 and the potential GDP is $10 trillion. Which of the following statements about this economy is false? O There is an inflationary output gap of $4 trillion. O In order for this economy to get back to the potential GDP, the PAE curve needs to shift to the right The economy is in an expansion. O The economy produces more than spends.
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.Refer to the information provided in Figure 8.9 below to answer the questions that follow AE 225 200 175 150 45 100 200 300 Aggregate output ($ millions) Figure 8.9 Refer to Figure 8.9. How will equilibrium aggregate expenditure and equilibrium aggregate output change as a result ?of a decrease in investment by $20 million AE line shifts down, increasing equilibrium output and equilibrium expenditure a O AE line shifts up, increasing equilibrium output and equilibrium expenditure b O AE line shifts down, decreasing equilibrium output and equilibrium expenditure .c O AE line shifts down, increasing equilibrium output and decreasing equilibrium expenditure .d O Aggregate expenditures ($ millions)
Real Disp. Consmp. Income Spending Saving Invst Plnd Plnd Govt Net Plnd Exp. Export Exp. 10.8 GDP Tax 10 6.8 1.2 1.5 2 0.5 11 7.6 1.4 1.5 0.5 11.6 12 10 8.4 1.6 1.5 2 0.5 12.4 13 2 11 9.2 1.8 1.5 2 0.5 13.2 14 12 10.0 2.0 1.5 0.5 14.0 15 13 10.8 2.2 1.5 0.5 148 16 14 11.6 2.4 1.5 2 0.5 15.6 Note: Amounts in billions. Refer to the above table. The equilibrium real GDP is $15 billion. $14 billion. $13 billion. $12 billion.
8
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