Suppose a simple economy has no government, so that the aggregate expenditure function is: AE = C +1+X - IM where X = 70 and IM = 10 + 0.15Y. The following graph is the Únited Kingdom's consumption schedule and the amount of investment is $40 billion. a) Plot the aggregate expenditures and the equilibrium point. Aggregate Expenditures 480- 420- 360- 300- 240- 180- 120-45 degree- 60- 60 120 180 240 300 360 420 480 Reset GDP (billions of dollars) b) What is the equilibrium GDP? Equilibrium GDP = $Obilion Aggregate expenditures (billions of dollars)

Suppose a simple economy has no government, so that the aggregate expenditure function is: AE = C +1+X - IM where X = 70 and IM = 10 + 0.15Y. The following graph is the Únited Kingdom's consumption schedule and the amount of investment is $40 billion. a) Plot the aggregate expenditures and the equilibrium point. Aggregate Expenditures 480- 420- 360- 300- 240- 180- 120-45 degree- 60- 60 120 180 240 300 360 420 480 Reset GDP (billions of dollars) b) What is the equilibrium GDP? Equilibrium GDP = $Obilion Aggregate expenditures (billions of dollars)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Please refernece attachment. Help needed.
1
Subject - advanced math Frank's loan pay off is to be made in two installments: $2500 in a year, and $3500 in 3 ½year. After talking to his loan officer, it was decided that he could pay both installments in 20months. How much would he pay if his loan is processed at 7 ¼ simple interest. Draw a timelineto illustrate your solution.
help
I need typing clear urjent no chatgpt use i will give 5 upvotes
hi you have not specified how you got 1.152