Real GDP (output) equals Possible Unplann- levels of disposable Consump- ed inven- tory lions of (billions of (billions employment income (bil- (millions of tion workers) dollars) dollars) of dollars) 40 $325 $300 45 375 325 50 425 350 55 475 375 60 525 400 65 575 425 70 625 450 |||
Real GDP (output) equals Possible Unplann- levels of disposable Consump- ed inven- tory lions of (billions of (billions employment income (bil- (millions of tion workers) dollars) dollars) of dollars) 40 $325 $300 45 375 325 50 425 350 55 475 375 60 525 400 65 575 425 70 625 450 |||
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter19: The Macroeconomic Perspective
Section: Chapter Questions
Problem 5SCQ: According to Table 19.7, how often have recessions occurred since the end of World War II (1945)?
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Question
Assume the level of autonomous investment is $100 billion and aggregate expenditures equal consumption and investment. Based on the following table, answer the following questions. a. Fill in the unplanned inventory column. b. Determine the MPC and MPS. c. If this economy employs a labor force of 40 million, what will happen to this level of employment? Explain and identify the equilibrium level of output. |
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