Suppose the following consumption function. C=Co + C₁ (Y-T) Let Co = 15 C₁ = 0.58 1 = 79 G = 76 T = 22 Also, let the initial value of production be the following: Yo = 539 Calculate the implied value of Z (call it Zo). Give the answer as an integer. Zo = 0 Calculate the change in inventories. If inventories decline, give a negative answer. Give the answer as an integer. Δίπνο = Π Based on your answer for the change in inventories, how much will the producer produce next period? = Based on your answer for Y₁, what will demand be next period? Z₁ = Based on your previous two answers, what is the second change in inventories? Δίπν, = Π

Suppose the following consumption function. C=Co + C₁ (Y-T) Let Co = 15 C₁ = 0.58 1 = 79 G = 76 T = 22 Also, let the initial value of production be the following: Yo = 539 Calculate the implied value of Z (call it Zo). Give the answer as an integer. Zo = 0 Calculate the change in inventories. If inventories decline, give a negative answer. Give the answer as an integer. Δίπνο = Π Based on your answer for the change in inventories, how much will the producer produce next period? = Based on your answer for Y₁, what will demand be next period? Z₁ = Based on your previous two answers, what is the second change in inventories? Δίπν, = Π

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

For macroeconomic

Suppose the following consumption function.
C=Co + C₁ (Y-T)
Let
Co = 15
C₁ = 0.58
| = 79
G = 76
T = 22
Also, let the initial value of production be the following:
Yo = 539
Calculate the implied value of Z (call it Zo). Give the answer as an integer.
Zo
=
Calculate the change in inventories. If inventories decline, give a negative answer. Give the answer as an integer.
Δίπνο
Y₁
Based on your answer for the change in inventories, how much will the producer produce next period?
☐
=
=
Based on your answer for Y₁, what will demand be next period?
Z₁ =
Based on your previous two answers, what is the second change in inventories?
Ainv₁
=

Branch of economics that analyzes the behavior and performance of an economy as a whole. It focuses on the study of aggregates and evaluates changes related to unemployment, gross domestic product, inflation, monetary and fiscal policies of the government.

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Step 1: Define Consumption function

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Step 2: Calculate Zo

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Step 3: Calculate the change in inventories

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Step 4: Calculate Y1

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Step 5: Calculate Z1

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Step 6: Find the second change in inventories

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