Calculate the missing values in the table below given that the Aggregate Consumption Function for acountry is equal toC= 150 + 0.75Y and planned investment is fixed at 300.AggregateOutput(Income) (Y)AggregateConsumption Investment(C)UnplannedInventoryChange (Y-AE)PlannedPlanned AggregateExpenditure (AE)Equilibrium?(1)1,5003001,8003002,1003002,4003002,700300What is likely to happen to aggregate output if the economy produces above the equilibriumlevel? How much is aggregate saving at the equilibrium level?Calculate the multiplier.Calculate the new equilibrium if Planned Investment increased by $50M.

The following problem has been solved as follows:

Calculate the missing values in the table below given that the Aggregate Consumption Function for a country is equal to C- 150 + 0.75Y, and planned investment is fixed at 300. Aggregate Output (Income) (Y) Aggregate Planned Unplanned Inventory Consumption Investment Expenditure (AE) Change (Y-AE) Planned Aggregate Equilibrium? (C) (1) 1,500 300 1,800 300 2,100 300 2,400 300 2,700 300 What is likely to happen to aggregate output if the economy produces above the equilibrium level? How much is aggregate saving at the equilibrium levei? Calculate the multiplier. Calculate the new equilibrium if Planned Investment increased by $50M.

Calculate the missing values in the table below given that the Aggregate Consumption Function for a country is equal to C- 150 + 0.75Y, and planned investment is fixed at 300. Aggregate Output (Income) (Y) Aggregate Planned Unplanned Inventory Consumption Investment Expenditure (AE) Change (Y-AE) Planned Aggregate Equilibrium? (C) (1) 1,500 300 1,800 300 2,100 300 2,400 300 2,700 300 What is likely to happen to aggregate output if the economy produces above the equilibrium level? How much is aggregate saving at the equilibrium levei? Calculate the multiplier. Calculate the new equilibrium if Planned Investment increased by $50M.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

ChapterB: Differential Calculus Techniques In Management

Section: Chapter Questions

Problem 8E

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