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
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
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
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