Planned aggregate expenditure (PAE, billions of $) 1,400 1,200 1,000 800 600 400 200 0 X₂ X² 2. Actual aggregate expenditure (Y, billions of dollars) Type your answers in all of the blanks and submit. 200 400 600 800 1,000 1,200 1,400 The following shows the PAE of an economy. Based on the graph, answer the following: 1. PAE equation is PAE = Type your answer here 2. The equilibrium level of output is $ Type your answer here Type your answer here 3. Suppose that planned investment increases by $200. The new PAE equation is PAE = + Type your answer here Y PAE 4. The new equilibrium level of output is $ Type your answer here 5. The multiplier is Type your answer here Y Type your answer here
Planned aggregate expenditure (PAE, billions of $) 1,400 1,200 1,000 800 600 400 200 0 X₂ X² 2. Actual aggregate expenditure (Y, billions of dollars) Type your answers in all of the blanks and submit. 200 400 600 800 1,000 1,200 1,400 The following shows the PAE of an economy. Based on the graph, answer the following: 1. PAE equation is PAE = Type your answer here 2. The equilibrium level of output is $ Type your answer here Type your answer here 3. Suppose that planned investment increases by $200. The new PAE equation is PAE = + Type your answer here Y PAE 4. The new equilibrium level of output is $ Type your answer here 5. The multiplier is Type your answer here Y Type your answer here
Chapter9: Aggregate Expenditures
Section: Chapter Questions
Problem 7E
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Question
Transcribed Image Text:Planned aggregate expenditure (PAE, billions of $)
1,400
1,200
1,000
800
600
400
200
0
Actual aggregate expenditure (Y, billions of dollars)
Type your answers in all of the blanks and submit
X₂ X² Ων
200 400 600 800 1,000 1,200 1,400
The following shows the PAE of an economy. Based on the graph, answer the following:
1. PAE equation is PAE = Type your answer here
2. The equilibrium level of output is $ Type your answer here
Type your answer here
3. Suppose that planned investment increases by $200. The new PAE equation is PAE =
+ Type your answer here
Y
PAE
4. The new equilibrium level of output is $ Type your answer here
5. The multiplier is Type your answer here
Y
Type your answer here
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Step 1: Define planned aggregate expenditure:
VIEWStep 2: Determine the equation of PAE:
VIEWStep 3: Determine the equilibrium output:
VIEWStep 4: Determine equation of PAE when planned investment is increased by $200
VIEWStep 5: Determine new equilibrium output:
VIEWStep 6: Determine the multiplier:
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