he graph below models an economy in equilibrium with a real GDP of $180 billion. Suppose that nsumer's expectations about future incomes change, causing unplanned inventory investment to crease by $30 billion. Shift the Planned Aggregate Expenditure (AE) line to show the effect of this ange. 300 270 5 240 210 180 150 120 Planned AE 45° line This change will cause the equilibrium level of real GDP to: remain unchanged. decrease. increase. How much will GDP change once the new equilibrium is reached? (If GDP decreases, be sure to include a negative sign.) Number billion dollars
he graph below models an economy in equilibrium with a real GDP of $180 billion. Suppose that nsumer's expectations about future incomes change, causing unplanned inventory investment to crease by $30 billion. Shift the Planned Aggregate Expenditure (AE) line to show the effect of this ange. 300 270 5 240 210 180 150 120 Planned AE 45° line This change will cause the equilibrium level of real GDP to: remain unchanged. decrease. increase. How much will GDP change once the new equilibrium is reached? (If GDP decreases, be sure to include a negative sign.) Number billion dollars
Chapter9: Demand-side Equilibrium: Unemployment Or Inflation?
Section9.A: The Simple Algebra Of Income Determination And The Multiplier
Problem 4TY
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Ab 26
Economics
![The graph below models an economy in equilibrium with a real GDP of $180 billion. Suppose that
consumer's expectations about future incomes change, causing unplanned inventory investment to
increase by $30 billion. Shift the Planned Aggregate Expenditure (AE) line to show the effect of this
change.
Planned Aggregate Spending (in billions of dollars)
300
270
240
210
180
150
30
Planned AE
0 30
60
45° line
90 120 150 180 210
Real GDP (in billions of dollars)
240 270 300
This change will cause the
equilibrium level of real GDP to:
remain unchanged.
decrease.
increase.
How much will GDP change
once the new equilibrium is
reached? (If GDP decreases,
be sure to include a negative
sign.)
Number
billion dollars](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2a39ead3-bc46-40d5-97e4-8f7630fa8073%2F98683cba-470d-41ca-aab8-ebf57dd2640d%2F039zq6n_processed.png&w=3840&q=75)
Transcribed Image Text:The graph below models an economy in equilibrium with a real GDP of $180 billion. Suppose that
consumer's expectations about future incomes change, causing unplanned inventory investment to
increase by $30 billion. Shift the Planned Aggregate Expenditure (AE) line to show the effect of this
change.
Planned Aggregate Spending (in billions of dollars)
300
270
240
210
180
150
30
Planned AE
0 30
60
45° line
90 120 150 180 210
Real GDP (in billions of dollars)
240 270 300
This change will cause the
equilibrium level of real GDP to:
remain unchanged.
decrease.
increase.
How much will GDP change
once the new equilibrium is
reached? (If GDP decreases,
be sure to include a negative
sign.)
Number
billion dollars
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