Consider the planned aggregate expenditure diagram in the figure below.Planned Aggregate Expenditure (PAE, billions of $)PAE = Y500450PAE4003503002502001501005050 100 150 200 250 300 350 400 450 500Actual Aggregate Expenditure (Y, billions of $)Instructions: Enter whole numbers into each box.a. What is the equilibrium level of output in this economy?|billionb. At an output level of $200 billion, planned aggregate expenditure is equal to $|likely to (Click to select) ♥ output in the upcoming year.billion and the economy isc. At an output level of $400 billion, planned aggregate expenditure is equal to $likely to (Click to select) ♥ output in the upcoming year.|billion and the economy is(Click to select)increasedecreasenot change

300 billion $ is the equilibrium level output in economy.

Consider the planned aggregate expenditure diagram in the figure below. Planned Aggregate Expenditure (PAE, billions of $) PAE = Y 500 450 PAE 400 350 300 250 200 150 100 50 50 100 150 200 250 300 350 400 450 500 Actual Aggregate Expenditure (Y, billions of $)

Consider the planned aggregate expenditure diagram in the figure below. Planned Aggregate Expenditure (PAE, billions of $) PAE = Y 500 450 PAE 400 350 300 250 200 150 100 50 50 100 150 200 250 300 350 400 450 500 Actual Aggregate Expenditure (Y, billions of $)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

100%

Consider the planned aggregate expenditure diagram in the figure below.
Planned Aggregate Expenditure (PAE, billions of $)
PAE = Y
500
450
PAE
400
350
300
250
200
150
100
50
50 100 150 200 250 300 350 400 450 500
Actual Aggregate Expenditure (Y, billions of $)
Instructions: Enter whole numbers into each box.
a. What is the equilibrium level of output in this economy?
|billion
b. At an output level of $200 billion, planned aggregate expenditure is equal to $|
likely to (Click to select) ♥ output in the upcoming year.
billion and the economy is
c. At an output level of $400 billion, planned aggregate expenditure is equal to $
likely to (Click to select) ♥ output in the upcoming year.
|billion and the economy is
(Click to select)
increase
decrease
not change

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