TABLE 1. Given: /= 150, G = 200, and T = 200, and C=150+.85Yd Fill in Cells & Find Equilibrium Y=AE 1 2 3 (Income) 1,500 1,700 2,000 2,200 1 OUTPUT (INCOME) Net Taxes I 1,500 1,700 2,000 2,200 Disposable Income Consumption Spending Y Y-T € 150+.85 Y 4 3 DISPOSABLE 4 CONSUMPTION 5 INCOME SPENDING Y Y T € 150+.85 Yd PLANNED Expenditure Saving (S) (Optionall (Y, C) TABLE 2. Finding Equilibrium After a $30 Billion Investment Spending Decrease Fill in Cells & Find Equilibrium Y=AE 2 NET TAXES T 5 SAVING 6 5 (Y,-E) 7 Investment Government Spending Purchases 1 G 6 7 INVESTMEN GOVERNME T NT PURCHASES G 1 8 PLANNED Aggregate Expenditure C+I+G 8 AGGREGATE EXPENDITURE C+I+G 9 UNPLANNED Inventory Change Y-(C+I+G) 9 INVENTORY CHANGE Y = {C + / +G] 10 Adjustment To Disequilibrium 10 ADJUSTMENT TO Disequilibrium

TABLE 1. Given: /= 150, G = 200, and T = 200, and C=150+.85Yd Fill in Cells & Find Equilibrium Y=AE 1 2 3 (Income) 1,500 1,700 2,000 2,200 1 OUTPUT (INCOME) Net Taxes I 1,500 1,700 2,000 2,200 Disposable Income Consumption Spending Y Y-T € 150+.85 Y 4 3 DISPOSABLE 4 CONSUMPTION 5 INCOME SPENDING Y Y T € 150+.85 Yd PLANNED Expenditure Saving (S) (Optionall (Y, C) TABLE 2. Finding Equilibrium After a $30 Billion Investment Spending Decrease Fill in Cells & Find Equilibrium Y=AE 2 NET TAXES T 5 SAVING 6 5 (Y,-E) 7 Investment Government Spending Purchases 1 G 6 7 INVESTMEN GOVERNME T NT PURCHASES G 1 8 PLANNED Aggregate Expenditure C+I+G 8 AGGREGATE EXPENDITURE C+I+G 9 UNPLANNED Inventory Change Y-(C+I+G) 9 INVENTORY CHANGE Y = {C + / +G] 10 Adjustment To Disequilibrium 10 ADJUSTMENT TO Disequilibrium

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

A10

TABLE 1. Given: /= 150, G = 200, and T = 200, and C=150 +.85Yd
Fill in Cells & Find Equilibrium Y=AE
1
2
3
4
5
6
7
PLANNED Expenditure
8
PLANNED
Aggregate
Expenditure
Government
Net
Taxes
T
Disposable
Income
Consumption
Spending
(Income)
y
Saving (S)
(Optionall
(Y,- €)
Investment
Spending Purchases
Y Y-T € 150+.85,
€ +1+G
1,500
1,700
2.000
2,200
TABLE 2. Finding Equilibrium After a $30 Billion Investment Spending Decrease
Fill in Cells & Find Equilibrium Y=AE
1
2
4
6
8
5
SAVING
OUTPUT
3
DISPOSABLE
INCOME
NET
TAXES
7
INVESTMEN GOVERNME
T
NT
PURCHASES
G
CONSUMPTION
SPENDING
€ = 150+.85 Yd
AGGREGATE
EXPENDITURE
(INCOME)
S
je
T
Y Y-T
(Y, - C)
€ +1+G
2-
1,500
1,700
2,000
2,200
9
UNPLANNED
Inventory
Change
Y-(C+I+G)
9
INVENTORY
CHANGE
Y [C+ / + G)
10
Adjustment
To
Disequilibrium
10
ADJUSTMENT
TO
Disequilibrium

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