Answer the following questions, which relate to the aggregate expenditures model: Instructions: Enter your answer as a whole number. a. If Ca is $110, Ig is $50, Xnis –$10, and Gis $30, what is the economy's equilibrium GDP? b. If real GDP in an economy is currently $210, Ca is $110, Ig is $50, X, is -$10, and Gis $30, will the economy's real GDP rise, fall, or stay the same? (Click to select) c. Suppose that full-employment (and full-capacity) output in an economy is $210. If Ca is $160, Ig is $50, Xn is –$10, and Gis $30, what will be the macroeconomic result? O There will be an inflationary expenditure gap and employment levels will be below the full-employment level. O There will be an inflationary expenditure gap and employment levels will be above the full-employment level.

Answer the following questions, which relate to the aggregate expenditures model: Instructions: Enter your answer as a whole number. a. If Ca is $110, Ig is $50, Xnis –$10, and Gis $30, what is the economy's equilibrium GDP? b. If real GDP in an economy is currently $210, Ca is $110, Ig is $50, X, is -$10, and Gis $30, will the economy's real GDP rise, fall, or stay the same? (Click to select) c. Suppose that full-employment (and full-capacity) output in an economy is $210. If Ca is $160, Ig is $50, Xn is –$10, and Gis $30, what will be the macroeconomic result? O There will be an inflationary expenditure gap and employment levels will be below the full-employment level. O There will be an inflationary expenditure gap and employment levels will be above the full-employment level.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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