A6. Consider the diagram of the AE function and the 45" line to the right.a. Suppose the level of actual national income is Y₁. What is the level of desiredaggregate expenditure? Is it greater or less than actual output?WNwhich isThe desired level of aggregate expenditure is $level of actual output. (Round your response to the nearest dollar)than theanPRti2.4002.2002000-1.800-1,0001400-1,2001,000+800-8 600+400-200Desired Aggregate Expenditure (AE)ok0Aggregate Expenditure FunctionTY1300#5 lingAEYOYO YA NO600 900 1200 1.500 1,800 2,100 2,400Actual Nominal Income (Y)o2

Aggregate expenditure is a sum of consumption spending, investment spending, government purchases…

Consider the diagram of the AE function and the 45" line to the right. a. Suppose the level of actual national income is Y₁. What is the level of desired aggregate expenditure? Is it greater or less than actual output? WN The desired level of aggregate expenditure is $ which is than the level of actual output. (Round your response to the nearest dollar) an PR iti 2.400 2.200 2,000 1.800 1,000 1,400 1,200 1,000 B00 8 000+ 400- 200 CDB Desired Aggregate Expenditure (AE) Aggregate Expenditure Function #5wing AE TY1 YOYO YA MS 0 300 600 900 1200 1.500 1,800 2,100 2,400 Actual Nominal Income (Y) o 2

Consider the diagram of the AE function and the 45" line to the right. a. Suppose the level of actual national income is Y₁. What is the level of desired aggregate expenditure? Is it greater or less than actual output? WN The desired level of aggregate expenditure is $ which is than the level of actual output. (Round your response to the nearest dollar) an PR iti 2.400 2.200 2,000 1.800 1,000 1,400 1,200 1,000 B00 8 000+ 400- 200 CDB Desired Aggregate Expenditure (AE) Aggregate Expenditure Function #5wing AE TY1 YOYO YA MS 0 300 600 900 1200 1.500 1,800 2,100 2,400 Actual Nominal Income (Y) o 2

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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