Assume that imports into an economy equal $125 billion and exports equal $75 Use the information in the following table, and information given on imports and exports, to determine the level of unplanned inventory at each level of real GDP. Possible Levels of Employment (Millions of workers) 40 45 50 55 60 65 70 Employment, Output, Consumption, and Unplanned Inventory Real GDP (Output) Equals Disposable Income (Billions of dollars) of net exports, the equilibrium real GDP is $ 325 375 425 475 525 575 625 Consumption (Billions of dollars) 300 325 350 375 400 425 450 Investment (Billions of dollars) 125 billion, and the equilibrium employment level is 125 125 125 125 125 125 Given the values of imports and exports, the effect of net exports (relative to the case where net exports are excluded) on this economy is to unplanned inventory investment at all levels of real GDP and to the level of real GDP at equilibrium. With the inclusion millions workers. Unplanned Inventory (Billions of dollars)

Assume that imports into an economy equal $125 billion and exports equal $75 Use the information in the following table, and information given on imports and exports, to determine the level of unplanned inventory at each level of real GDP. Possible Levels of Employment (Millions of workers) 40 45 50 55 60 65 70 Employment, Output, Consumption, and Unplanned Inventory Real GDP (Output) Equals Disposable Income (Billions of dollars) of net exports, the equilibrium real GDP is $ 325 375 425 475 525 575 625 Consumption (Billions of dollars) 300 325 350 375 400 425 450 Investment (Billions of dollars) 125 billion, and the equilibrium employment level is 125 125 125 125 125 125 Given the values of imports and exports, the effect of net exports (relative to the case where net exports are excluded) on this economy is to unplanned inventory investment at all levels of real GDP and to the level of real GDP at equilibrium. With the inclusion millions workers. Unplanned Inventory (Billions of dollars)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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