Macmillan Education WORK IT OUT LaunchPad For interactive, step-by-step help in solving the following problem, visitLaunchPad by using the URL on the back cover of this book. The accompanying table shows gross domestic product (GDP), disposable income (YD), con- sumer spending (C), and planned investment spending (Iplanned) in an economy. Assume there is no government or foreign sector in this economy. Complete the table by calculating planned aggre- gate spending (AEplanned) and unplanned inven- tory investment (IUnplanned).

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
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WORK IT OUT
A LaunchPad
Macmillan Education
For interactive, step-by-step help in solving the following problem,
vISitLaunchPad by using the URL on the back cover of this book.
The accompanying table shows gross domestic
product (GDP), disposable income (YD), con-
sumer spending (C), and planned investment
spending (Iplanned) in an economy. Assume there is
no government or foreign sector in this economy.
Complete the table by calculating planned aggre-
gate spending (AEplanned) and unplanned inven-
tory investment (IUnplanned).
GDP
YD
C
IPlanned AEPIanned lunplanned
(billions of dollars)
$0
$0 $100
$300
400
400
400
300
800
800
700
300
1,200 1,200 1,000
300
1,600 1,600 1,300
300 ?
300
2,000 2,000 1,600
300
2,400 2,400 1,900
300
2,800 2,800 2,200
300
3,200 3,200 2,500
Transcribed Image Text:WORK IT OUT A LaunchPad Macmillan Education For interactive, step-by-step help in solving the following problem, vISitLaunchPad by using the URL on the back cover of this book. The accompanying table shows gross domestic product (GDP), disposable income (YD), con- sumer spending (C), and planned investment spending (Iplanned) in an economy. Assume there is no government or foreign sector in this economy. Complete the table by calculating planned aggre- gate spending (AEplanned) and unplanned inven- tory investment (IUnplanned). GDP YD C IPlanned AEPIanned lunplanned (billions of dollars) $0 $0 $100 $300 400 400 400 300 800 800 700 300 1,200 1,200 1,000 300 1,600 1,600 1,300 300 ? 300 2,000 2,000 1,600 300 2,400 2,400 1,900 300 2,800 2,800 2,200 300 3,200 3,200 2,500
d. What is the value of the multiplier?
e. If planned investment spending falls to $200 billion,
what will be the new Y*?
f. If autonomous consumer spending rises to $200 bil-
lion, what will be the new Y*?
Transcribed Image Text:d. What is the value of the multiplier? e. If planned investment spending falls to $200 billion, what will be the new Y*? f. If autonomous consumer spending rises to $200 bil- lion, what will be the new Y*?
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