Consider the following is the economy of Country W: C = 100 + 0.8Y I = 150 Answer the following questions: a) Determine the equilibrium level of output algebraically using the aggregate expenditure approach. b) Graphically ilustrate the equilibrium level of output from part (a). c) Suppose that the initial aggregate output is 550. Calculate the change in inventories that will occur in this period.

Consider the following is the economy of Country W: C = 100 + 0.8Y I = 150 Answer the following questions: a) Determine the equilibrium level of output algebraically using the aggregate expenditure approach. b) Graphically ilustrate the equilibrium level of output from part (a). c) Suppose that the initial aggregate output is 550. Calculate the change in inventories that will occur in this period.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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