Consider the graph below: Planned aggregate expenditure (PAE, billions of $) 1,000 900 800 700 600 500 400 300 200 100 PAE = Y PAE 2 PAE1 600 500 400 300 200 100 Actual aggregate expenditure (output or GDP, billions of $) >1000 900 800 700 Instructions: In part a, round your answer to the nearest whole number. In part b, round your answer to one decimal place. a. The expenditure multiplier in this economy is: b. The marginal propensity to consume in this economy is:
Consider the graph below: Planned aggregate expenditure (PAE, billions of $) 1,000 900 800 700 600 500 400 300 200 100 PAE = Y PAE 2 PAE1 600 500 400 300 200 100 Actual aggregate expenditure (output or GDP, billions of $) >1000 900 800 700 Instructions: In part a, round your answer to the nearest whole number. In part b, round your answer to one decimal place. a. The expenditure multiplier in this economy is: b. The marginal propensity to consume in this economy is:
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![Consider the graph below:
Planned aggregate expenditure (PAE, billions of $)
1,000
900
800
700
600
500
400
300
200
100
PAE = Y
PAE
2
PAE1
600
500
400
300
200
100
Actual aggregate expenditure (output or GDP, billions of $)
>1000
900
800
700
Instructions: In part a, round your answer to the nearest whole number. In part b, round your answer to one decimal
place.
a. The expenditure multiplier in this economy is:
b. The marginal propensity to consume in this economy is:](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe9c83c07-5ec7-4693-9779-4f5aabbdb1db%2F5ca24a4a-e761-4909-983d-b3af0f47524b%2Ffu29oab_processed.png&w=3840&q=75)
Transcribed Image Text:Consider the graph below:
Planned aggregate expenditure (PAE, billions of $)
1,000
900
800
700
600
500
400
300
200
100
PAE = Y
PAE
2
PAE1
600
500
400
300
200
100
Actual aggregate expenditure (output or GDP, billions of $)
>1000
900
800
700
Instructions: In part a, round your answer to the nearest whole number. In part b, round your answer to one decimal
place.
a. The expenditure multiplier in this economy is:
b. The marginal propensity to consume in this economy is:
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