Consider the data presented in the table: Actual Aggregate Expenditure or Output (Y) Consumption (C) (billions of $) (billions of $) 550 650 750 850 950 350 425 500 575 650 Planned Investment (billions of $) 115 Government Spending (G) (billions of $) 110 Firms have no incentive to change the level of output. Production is maximized. Instructions: In parts a-c, enter your answers as a whole number. In parts d-e, round your answers to two decimal places. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Unplanned investment is zero. Based on the assumptions of the aggregate expenditure model, fill in the columns for planned investment, government spending, and net exports. Net Exports (NX) (billions of $) a. For each level of actual aggregate expenditure, calculate unplanned inventory investment. b. The equilibrium level of aggregate expenditure in this economy is: $ 750 billion. At the equilibrium level of aggregate expenditure, which of the following are true? Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the option once to place a check mark. For incorrect answer(s), click the option twice to empty the box. 25 Actual aggregate output equals the sum of spending in all sectors. c. Suppose that planned investment increases by $25 billion. The new equilibrium level of aggregate expenditure in this economy is: $ d. The marginal propensity to consume in this economy is: e. The expenditure multiplier in this economy is: Unplanned Investment (inventory change) (billions of $) billion.
Consider the data presented in the table: Actual Aggregate Expenditure or Output (Y) Consumption (C) (billions of $) (billions of $) 550 650 750 850 950 350 425 500 575 650 Planned Investment (billions of $) 115 Government Spending (G) (billions of $) 110 Firms have no incentive to change the level of output. Production is maximized. Instructions: In parts a-c, enter your answers as a whole number. In parts d-e, round your answers to two decimal places. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Unplanned investment is zero. Based on the assumptions of the aggregate expenditure model, fill in the columns for planned investment, government spending, and net exports. Net Exports (NX) (billions of $) a. For each level of actual aggregate expenditure, calculate unplanned inventory investment. b. The equilibrium level of aggregate expenditure in this economy is: $ 750 billion. At the equilibrium level of aggregate expenditure, which of the following are true? Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the option once to place a check mark. For incorrect answer(s), click the option twice to empty the box. 25 Actual aggregate output equals the sum of spending in all sectors. c. Suppose that planned investment increases by $25 billion. The new equilibrium level of aggregate expenditure in this economy is: $ d. The marginal propensity to consume in this economy is: e. The expenditure multiplier in this economy is: Unplanned Investment (inventory change) (billions of $) billion.
Chapter32: The Land Market And Natural Resources
Section: Chapter Questions
Problem 10E
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Transcribed Image Text:Consider the data presented in the table:
Actual Aggregate
Expenditure or Output (Y) Consumption (C)
(billions of $)
(billions of $)
550
650
750
850
950
350
425
500
575
650
Planned
Investment
(billions of $)
115
Production is maximized.
Government
Spending (G)
(billions of $)
110
Firms have no incentive to change the level of output.
Instructions: In parts a-c, enter your answers as a whole number. In parts d-e, round your answers to two decimal places. If you are
entering any negative numbers be sure to include a negative sign (-) in front of those numbers.
Unplanned investment is zero.
Based on the assumptions of the aggregate expenditure model, fill in the columns for planned investment, government spending, and
net exports.
Net Exports (NX)
(billions of $)
a. For each level of actual aggregate expenditure, calculate unplanned inventory investment.
b. The equilibrium level of aggregate expenditure in this economy is: $ 750 billion.
At the equilibrium level of aggregate expenditure, which of the following are true?
Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the option once to
place a check mark. For incorrect answer(s), click the option twice to empty the box.
25
Actual aggregate output equals the sum of spending in all sectors.
c. Suppose that planned investment increases by $25 billion.
The new equilibrium level of aggregate expenditure in this economy is: $
d. The marginal propensity to consume in this economy is:
e. The expenditure multiplier in this economy is:
Unplanned Investment
(inventory change)
(billions of $)
billion.
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