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Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. REAL EXPENDITURE (Billlons of dollars) 1000 900 800 700 600 500 400 400 500 600 700 800 REAL GDP (Billions of dollars) 900 1000 TE line Equilibrium GDP Use the black point (plus symbol) to indicate the equilibrium in this economy, that is, where total expenditure and income are equal. Note: Dashed drop lines will automatically extend to both axes. The marginal propensity to consume (MPC) for this economy is Suppose real GDP is currently $500 billion. Assuming the price level remains constant, this would mean that , which would send a signal to firms to and the oversimplified multiplier for this economy is equal to

Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. REAL EXPENDITURE (Billlons of dollars) 1000 900 800 700 600 500 400 400 500 600 700 800 REAL GDP (Billions of dollars) 900 1000 TE line Equilibrium GDP Use the black point (plus symbol) to indicate the equilibrium in this economy, that is, where total expenditure and income are equal. Note: Dashed drop lines will automatically extend to both axes. The marginal propensity to consume (MPC) for this economy is Suppose real GDP is currently $500 billion. Assuming the price level remains constant, this would mean that , which would send a signal to firms to and the oversimplified multiplier for this economy is equal to

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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1st Fill in the blank options: The economy is in equilibrium, or aggregate expenditure exceeds current output by $225 billion, or aggregate expenditure exceeds current output by $150 billion, or current output exceeds aggregated expenditure by $150 billion, or current output exceeds aggregated expenditure by $225 billion. 

2nd Fill in the blank options: keep production the same, or increase production, or decreased production

3rd Fill in the blank options: 0.25 or 0.80 or 0.50 or 0.75 

4th Fill in the blank options: 2 or 1.3 or 1 or 4

1. Aggregate expenditure and income The following table shows consumption (C), investment (I), government purchases (G), and net exports (X-IM) in a hypothetical economy for various levels of real GDP (Y). Assume that the price level remains unchanged at all levels of income. All figures are in billions of dollars. Compute total expenditure for each income level, and fill in the last column in the following table. Y C I G X-IM Total Expenditure 500 525 250 150 -200 600 550 250 150 -200 575 250 150 600 250 150 900 625 250 150 700 800 RE (Billions of dollars) 1000 The following graph shows income (Y) on the horizontal axis and total expenditure (TE) on the vertical axis. The grey line represents a 45-degree (Y = TE) line. 900 Use the blue points (circle symbol) to plot the total expenditure line for this economy at an income of $500 billion, $600 billion, $700 billion, $800 billion, and $900 billion. Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. (?) 800 -200 700 -200 + -200 C TE line Equilibrium GDP
Transcribed Image Text:1. Aggregate expenditure and income The following table shows consumption (C), investment (I), government purchases (G), and net exports (X-IM) in a hypothetical economy for various levels of real GDP (Y). Assume that the price level remains unchanged at all levels of income. All figures are in billions of dollars. Compute total expenditure for each income level, and fill in the last column in the following table. Y C I G X-IM Total Expenditure 500 525 250 150 -200 600 550 250 150 -200 575 250 150 600 250 150 900 625 250 150 700 800 RE (Billions of dollars) 1000 The following graph shows income (Y) on the horizontal axis and total expenditure (TE) on the vertical axis. The grey line represents a 45-degree (Y = TE) line. 900 Use the blue points (circle symbol) to plot the total expenditure line for this economy at an income of $500 billion, $600 billion, $700 billion, $800 billion, and $900 billion. Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. (?) 800 -200 700 -200 + -200 C TE line Equilibrium GDP
Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. REAL EXPENDITURE (Billions of dollars) 1000 900 800 700 600 500 400 400 - 500 BOO 700 600 REAL GDP (Billions of dollars) 900 1000 TE line Equilibrium GDP Use the black point (plus symbol) to indicate the equilibrium in this economy, that is, where total expenditure and income are equal. Note: Dashed drop lines will automatically extend to both axes. The marginal propensity to consume (MPC) for this economy is Suppose real GDP is currently $500 billion. Assuming the price level remains constant, this would mean that ♥, which would send a signal to firms to and the oversimplified multiplier for this economy is equal to
Transcribed Image Text:Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. REAL EXPENDITURE (Billions of dollars) 1000 900 800 700 600 500 400 400 - 500 BOO 700 600 REAL GDP (Billions of dollars) 900 1000 TE line Equilibrium GDP Use the black point (plus symbol) to indicate the equilibrium in this economy, that is, where total expenditure and income are equal. Note: Dashed drop lines will automatically extend to both axes. The marginal propensity to consume (MPC) for this economy is Suppose real GDP is currently $500 billion. Assuming the price level remains constant, this would mean that ♥, which would send a signal to firms to and the oversimplified multiplier for this economy is equal to
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