Question 20PEPESPE4PE3PE₂PE₁Y₂OP1 and P4O P3O P1 and P2O P4 and P5Y₁AEPEY3.3 ptsY₁Refer to the figure above. Which levels of planned expenditures would have rising inventories andunemployment?

Aggregate expenditure is the actual expenditure that is incurred in the economy. Aggregate…

Answered: Refer to the figure above. Which levels…

Refer to the figure above. Which levels of planned expenditures would have rising inventories and unemployment? O P1 and P4. OP3 OP1 and P2 P4 and P5

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose that the level of GDP increased by $100 billion in an economy where the marginal propensity to consume is 0.5. The initial change in spending must have been: O $5 billion O $100 billion O $50 billion O $500 billion
determine the equilibrium level of real GDP and the MPC.
QUESTION 6 Potential GDP Aggregate expenditure AE, 45° Y. Real GDP (Y) When real GDP is greater than Yo in the diagram above: O A. - inventories will decrease OB. ·Aggregate expenditure will be less than Real GDP OC. Aggregate expenditure will be equal to Real GDP OD. O D. inventories will increase QUESTION 7 Y G Xn $1,000 $1,400 1,400 1,400 1,400 1,400 $0 $800 -$200 2,500 5,000 7,500 10,000 2,300 3,800 5,300 6,800 1,000 1,000 1,000 1,000 -200 -200 -200 -200 Suppose you are given the data in the table above for a hypothetical economy. All data are in billions of dollars. Yis actual real GDP, and C, Ip, G, and Xn are the consumption, planned investment, government purchases, and net exports components of aggregate expenditures, respectively. Calculate the equilibrium GDP (give your answer in billions of $) Aggregate Expenditure
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All of the following are true when there is an unplanned decrease in inventories, except: O a. Actual investment is greater than planned investment O b. Real GDP will be rising O c. GDP is less than aggregate expenditures O d. Saving is less than planned investment
Suppose the marginal propensity to consume in an economy is 0.60. If the disposable income in this economy changes by $50 billion, consumption changes by $ billion 50 40 20 30 O O O O
With consumption expenditure on the vertical axis and disposable income on the horizontal axis, the consumption function intersects the 45-degree line at $8 trillion. This result indicates that O consumption spending is more than $8 trillion because taxes have been paid. O consumption spending is less than $8 trillion because taxes must be paid. autonomous consumption spending is $8 trillion. O consumption spending is $8 trillion when disposable income is $8 trillion.