The rate of output and planned expenditures for the economy of Timbuktu are shown in the following table:               Total Output              Planned Aggregate Expenditures                                                                  (Two-Sector Economy) (Real GDP in billion dollars)                          (in billions)                    5,000                                                5,250                    5,500                                                5,500                    6,000                                                5,750                    6,500                                                6,000                    7,000                                                6,250   a) If the current output rate is $5.0 trillion, what will tend to happen to business inventories, future output, and employment?   b)  If the current output rate is $6.5 trillion, what will tend to happen to inventories, future output and employment?  c)  What is the equilibrium rate of income/output of Timbuktu economy?

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The rate of output and planned expenditures for the economy of Timbuktu are shown in the following table:

              Total Output              Planned Aggregate Expenditures                                                                  (Two-Sector Economy)
(Real GDP in billion dollars)                          (in billions)

                   5,000                                                5,250
                   5,500                                                5,500
                   6,000                                                5,750
                   6,500                                                6,000
                   7,000                                                6,250

  a) If the current output rate is $5.0 trillion, what will tend to happen to business inventories, future output, and employment? 

 b)  If the current output rate is $6.5 trillion, what will tend to happen to inventories, future output and employment?

 c)  What is the equilibrium rate of income/output of Timbuktu economy? 

 d) If the economy's full employment rate of output is $6.0 trillion, what will happen to the unemployment rate assuming that  it will persist into the future?

 e)  What would happen to the equilibrium level of output/income if there will be an autonomous increase in investment of $250 billion?

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