QUESTION NO. 3 Complete the following table and estimate the equilibrium levels of output and employment in this private closed economy, assuming that the level of investment is $16 billion and is independent of the level of total output. Employment (Millions) 40 45 50 55 60 65 70 75 80 GDP DI (Billions) 240 260 280 300 320 340 360 380 400 Consumption (Billions) 244 260 276 292 308 324 340 356 372 Aggregate Expenditures (Billions) Investment Saving (Billions) (Billions)

QUESTION NO. 3 Complete the following table and estimate the equilibrium levels of output and employment in this private closed economy, assuming that the level of investment is $16 billion and is independent of the level of total output. Employment (Millions) 40 45 50 55 60 65 70 75 80 GDP DI (Billions) 240 260 280 300 320 340 360 380 400 Consumption (Billions) 244 260 276 292 308 324 340 356 372 Aggregate Expenditures (Billions) Investment Saving (Billions) (Billions)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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se the information in the table to answer the following questions All numbers are in billions of 2012 dollars Real GDP (Y) $10,000 $11,000 $12,000 Consumption (C) $8.500 $0,300 $10,100 $10,000 $11.700 Planned Investment (1) $1,000 $1,000 $1,000 $13,000 $14,000 The equilibrium level of GDP is $ 12000 billion. The MPC is 0.8 (enter your response to two decimal places) Suppose that not exports increase by $200 billion. Using the multiplier formula, determine the new level of GDP A $200 billion increase in net exports leads to a change in spending of spillon, so the new level of GDP will be $billion $1,000 $1,000 Government Purchases (G) $1,400 $1,400 $1,400 $1,400 $1,400 Net Exports (NX) -$500 -$500 $500 -$500 -$500
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