An economy is described by the following equations: C= 2,600+ 0.8 (YT) - 10,000r IP 2,000 10,000r G = 1,800 NX = 0 T= 3,000 The real interest rate, expressed as a decimal, is 0.10 (that is, 10 percent). a. Find a numerical equation relating planned aggregate expenditure to output. Instructions: Enter your response for mpc rounded to one decimal place. 0.8 Y PAE b. Using a table (or algebra if you have used the appendix to this chapter), solve for short-run equilibrium output. Instructions: If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Leave no cells blank. You must enter 'zero' for the answer to grade correctly. Output Y 9,500 9,600 9,700 9,800 9,900 10,000 10,100 10,200 Planned aggregate expenditure (PAE) Short-run equilibrium output: Y PAE

An economy is described by the following equations: C= 2,600+ 0.8 (YT) - 10,000r IP 2,000 10,000r G = 1,800 NX = 0 T= 3,000 The real interest rate, expressed as a decimal, is 0.10 (that is, 10 percent). a. Find a numerical equation relating planned aggregate expenditure to output. Instructions: Enter your response for mpc rounded to one decimal place. 0.8 Y PAE b. Using a table (or algebra if you have used the appendix to this chapter), solve for short-run equilibrium output. Instructions: If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Leave no cells blank. You must enter 'zero' for the answer to grade correctly. Output Y 9,500 9,600 9,700 9,800 9,900 10,000 10,100 10,200 Planned aggregate expenditure (PAE) Short-run equilibrium output: Y PAE

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

An economy is described by the following equations:
C = 2,600+ 0.8 (Y- T) - 10,000r
IP = 2,000
10,000r
G = 1,800
NX = 0
T = 3,000
The real interest rate, expressed as a decimal, is 0.10 (that is, 10 percent).
a. Find a numerical equation relating planned aggregate expenditure to output.
Instructions: Enter your response for mpc rounded to one decimal place.
PAE=+
0.8 Y
b. Using a table (or algebra if you have used the appendix to this chapter), solve for short-run equilibrium output.
Instructions: If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Leave no cells
blank. You must enter 'zero' for the answer to grade correctly.
Output Y
9,500
9,600
9,700
9,800
9,900
10,000
10,100
10,200
Planned aggregate
expenditure (PAE)
Short-run equilibrium output:
Y PAE

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