### Understanding Aggregate Expenditure and Unplanned Changes in Inventories**Objective:**Analyze the role of consumption, investment, government purchases, and net exports in determining the aggregate expenditure and unplanned changes in inventories.**Instructions:**Fill in the missing values in the table. Assume that the value of the Marginal Propensity to Consume (MPC) does not change as real GDP changes and that there are zero taxes. (All values are integers.)#### Given Data Table| Real GDP (Y) | Consumption (C) | Planned Investment (I) | Government Purchases (G) | Net Exports (NX) ||--------------|-----------------|------------------------|--------------------------|------------------|| $11,000 | $5,500 | $1,100 | $1,200 | -$275 || $12,000 | $6,000 | $1,100 | $1,200 | -$275 || $13,000 | | $1,100 | $1,200 | -$275 || $14,000 | | $1,100 | $1,200 | -$275 || $15,000 | | $1,100 | $1,200 | -$275 |#### Task:Now use the table to find aggregate expenditure and the unplanned change in inventories.#### Expanded Data Table with Computation Requirements| Real GDP (Y) | Consumption (C) | Planned Investment (I) | Government Purchases (G) | Net Exports (NX) | Planned Aggregate Expenditure (AE) | Unplanned Change in Inventories ||--------------|-----------------|------------------------|--------------------------|------------------|------------------------------------|--------------------------------|| $11,000 | $5,500 | $1,100 | $1,200 | -$275 | | || $12,000 | $6,000 | $1,100 | $1,200 | -$275 | | |### Steps for Completion:1. **Identify Consumption (C) values:** - Use the formula for consumption based on the marginal propensity to consume (MPC). - Given that the MPC does not change, deduce the consumption values for the remaining GDP levels.2

Marginal Propensity to Consume measures the change in consumer spending resulting from a change in…

Fill in the missing values in the following table. Assume that the value of the MPC does not change as real GDP changes and that there are zero taxes. (Enter all values as integers.) Net Real GDP (Y) Consumption (C) Planned Investment (1) Government Purchases (G) $11,000 $1,200 Exports (NX) - $275 -$275 - $275 $5,500 $6,000 $ $12,000 1,200 $13,000 1,200 1,200 1,200 $14,000 $15,000 Real GDP (Y) $11,000 $12,000 Now use the table to find aggregate expenditure and the unplanned change in inventories. $ Consumption (C) $5,500 $6,000 Planned Investment (1) $1,100 $1,100 $1,100 $1,100 $1,100 $1,100 $1,100 Government Purchases (G) $1,200 1,200 Net Exports (NX) -$275 - $275 Planned Aggregate Expenditure (AE) $ - $275 - $275 Unplanned Change in Inventories

Fill in the missing values in the following table. Assume that the value of the MPC does not change as real GDP changes and that there are zero taxes. (Enter all values as integers.) Net Real GDP (Y) Consumption (C) Planned Investment (1) Government Purchases (G) $11,000 $1,200 Exports (NX) - $275 -$275 - $275 $5,500 $6,000 $ $12,000 1,200 $13,000 1,200 1,200 1,200 $14,000 $15,000 Real GDP (Y) $11,000 $12,000 Now use the table to find aggregate expenditure and the unplanned change in inventories. $ Consumption (C) $5,500 $6,000 Planned Investment (1) $1,100 $1,100 $1,100 $1,100 $1,100 $1,100 $1,100 Government Purchases (G) $1,200 1,200 Net Exports (NX) -$275 - $275 Planned Aggregate Expenditure (AE) $ - $275 - $275 Unplanned Change in Inventories

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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You are told that taxes in this economy are equal to 100. What is the value of autonomous consumption? Planned Government Net Exports Aggregate Change in Real GDP (Y) Consumption (C) Investment (1') Purchases (G) (NX) Expenditures (AE) Inventories 1500 1100 250 1600 1175 100 1700 1250 1800 1900 2000 75 Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a 50 75 100 d. 125
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Personal consumption expenditures $4,750 Exports $810 Federal government spending $1,400 Social Security taxes $600 Depreciation $450 Indirect Business Taxes $550 New Residential Construction $800 Imports $850 Non Residential Investment $300 Corporate Income Taxes $200 Corporate Profits $50 Personal Taxes $800 Business Taxes $1,000 Transfer Payments $700 Part A: In the table above and using the Expenditure Approach calculate the Gross Domestic Product (GDP) in millions of dollars Part B: Now assume that consumers purchase an extra $2000 of goods produced overseas, i.e., the consumption expenditures (from Part A) increase to $6,750. How would this scenario affect the GDP deflator, i.e., increase, decrease, remain unaffected or there is not enough information to tell?
The following table shows data on personal consumption expenditures, gross private domestic investment, exports, imports, and government consumption expenditures and gross investment for the United States in 2007, as published by the Bureau of Economic Analysis. All figures are in billions of dollars. Fill in the missing cells in the following table to calculate GDP. Components Personal Consumption Expenditures (CC) $9,734.2 Gross Private Domestic Investment (II) $2,125.4 Exports (XX) $1,643 Imports (MM) $2,351 Net exports of goods and services (X−MX−M) Government Consumption Expenditures and Gross Investment (GG) $2,689.8 Gross domestic product (GDP) This method of calculating GDP, which involves summing the , is called the approach.
Please give a detailed solution with an explanation.
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TOPIC: Comparing total expenditures and total production