Planned AE (PAE, trillion $) 06:-1 O 12:1 O 12-1 45° 6:1 AE = Y Refer to a graph above. Suppose the the economy has the planned aggregate expenditure of PAE₁ and planned investment is $2 trillion, government purchases is $2 trillion and net export is -$2 trillion. The macroeconomic equilibrium GDP is $ trillion. trillion and autonomous consumption is $ PAE₂= 7+0.5Y PAE = 5 +0.5Y PAE₁ = 3 +0.5Y Actual AE (GDP, Y, trillion $)
Planned AE (PAE, trillion $) 06:-1 O 12:1 O 12-1 45° 6:1 AE = Y Refer to a graph above. Suppose the the economy has the planned aggregate expenditure of PAE₁ and planned investment is $2 trillion, government purchases is $2 trillion and net export is -$2 trillion. The macroeconomic equilibrium GDP is $ trillion. trillion and autonomous consumption is $ PAE₂= 7+0.5Y PAE = 5 +0.5Y PAE₁ = 3 +0.5Y Actual AE (GDP, Y, trillion $)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
![Planned AE
(PAE, trillion
$)
06:-1
O 12:1
12-1
45°
6:1
AE = Y
PAE₂= 7+0.5Y
PAE = 5 +0.5Y
Refer to a graph above. Suppose the the economy has the planned aggregate expenditure of PAE₁
and planned investment is $2 trillion, government purchases is $2 trillion and net export is -$2
trillion. The macroeconomic equilibrium GDP is $
trillion.
trillion and autonomous consumption is $
PAE₁ = 3 +0.5Y
Actual AE (GDP, Y,
trillion $)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fade0edb4-aaef-4437-aa61-c7d07457cac9%2F824931a1-be41-4c1f-b0e3-7341532fed1f%2Fzypdngl_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Planned AE
(PAE, trillion
$)
06:-1
O 12:1
12-1
45°
6:1
AE = Y
PAE₂= 7+0.5Y
PAE = 5 +0.5Y
Refer to a graph above. Suppose the the economy has the planned aggregate expenditure of PAE₁
and planned investment is $2 trillion, government purchases is $2 trillion and net export is -$2
trillion. The macroeconomic equilibrium GDP is $
trillion.
trillion and autonomous consumption is $
PAE₁ = 3 +0.5Y
Actual AE (GDP, Y,
trillion $)
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