The desired aggregate expenditure function of an economy is illustrated in the graph to the right. The desired aggregate expenditure function in this economy can be written as: AE = 750 + 0.6 XY (Round your response for the slope term to two decimal places and for the intercept term to the nearest whole number.) By looking at the graph, we can conclude that a decrease in desired autonomous government expenditures by $250 will result in in the equilibrium level of expenditures by $. (Round your response to the nearest dollar.)

The desired aggregate expenditure function of an economy is illustrated in the graph to the right. The desired aggregate expenditure function in this economy can be written as: AE = 750 + 0.6 XY (Round your response for the slope term to two decimal places and for the intercept term to the nearest whole number.) By looking at the graph, we can conclude that a decrease in desired autonomous government expenditures by $250 will result in in the equilibrium level of expenditures by $. (Round your response to the nearest dollar.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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National income accounting (GDP calculate) is an essential part of macroeconomics. Analyse the following hypothetical economy and answer the questions that follow: G = 400, I = 70, X = 300, M =100, autonomous consumption = 100, MPC = 0.6, taxes=50 Calculate the level of national income in this economy What percentage of disposable income do people save? Calculate the level of savings Show that in this economy, injections are indeed equal to withdrawals Calculate the multiplier? Using the multiplier in v above, what would be the new level of national income if government spending rose to 500?
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This question has four parts, here is the fourth and final part. 1.4. Create a graph for the aggregate expenditures (AE) model in Excel using the data from Table 1: A Private Closed Economy. (table 1 is in the attachment) tips: Remember, the 45degree line (also known as the Keynesian Cross) is a tool that shows how differences in aggregate expenditures and real GDP can affect business inventories which will affect future levels of real GDP. Aggregate expenditure and GDP are both function of consumption, investment, government spending, and net exports. So, the equations for the two are identical: Y = C + I + G + NX, and AE (aggregate expenditure) = C + I + G + NX For private closed economy the equation is: Y = C + I , and AE (aggregate expenditure) = C + I
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