Using the consumption and saving data above and assuming planned investment is $19 billion, answer the following questions: a. What are saving and planned investment at the $390 billion level of domestic output? Saving = $ Investment = $ billion b. What are saving and actual investment at that level? Saving = $1 Investment = $ billion Investment = $ billion Investment = $ c. What are saving and planned investment at the $350 billion level of domestic output? Saving = $ billion billion billion d. What are the levels of saving and actual investment? Saving = $ billion billion e. In which direction and by what amount will unplanned investment change as the economy moves from the $390 billion level of GDP to the equilibrium level of real GDP? Unplanned inventories will [(Click to select) ▼ by $ f. From the $350 billion level of real GDP to the equilibrium level of GDP? Unplanned inventories will (Click to select) by $ billion. billion.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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The table below shows levels of employment, output, consumption, and saving for a private closed economy.
Possible Levels
Real Domestic
of Employment,
Consumption,
Billions
Saving,
Output,
Billions
Millions
Billions
35
$230
$239
-$9
40
250
255
-5
45
270
271
-1
50
290
287
3
55
310
303
7
60
330
319
11
65
350
335
15
70
370
351
19
75
390
367
23
Instructions: Enter your answers as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) in
front of those numbers.
Using the consumption and saving data above and assuming planned investment is $19 billion, answer the following questions:
a. What are saving and planned investment at the $390 billion level of domestic output?
Saving = $
billion
Investment = $
billion
b. What are saving and actual investment at that level?
Saving = $
billion
Investment = $
billion
c. What are saving and planned investment at the $350 billion level of domestic output?
Saving = $
billion
Investment = $
billion
d. What are the levels of saving and actual investment?
Saving = $
billion
Investment = $
billion
e. In which direction and by what amount will unplanned investment change as the economy moves from the $390 billion level of GDP
to the equilibrium level of real GDP?
Unplanned inventories will(Click to select) v by $
billion.
f. From the $350 billion level of real GDP to the equilibrium level of GDP?
Unplanned inventories will (Click to select)
by $
billion.
Transcribed Image Text:The table below shows levels of employment, output, consumption, and saving for a private closed economy. Possible Levels Real Domestic of Employment, Consumption, Billions Saving, Output, Billions Millions Billions 35 $230 $239 -$9 40 250 255 -5 45 270 271 -1 50 290 287 3 55 310 303 7 60 330 319 11 65 350 335 15 70 370 351 19 75 390 367 23 Instructions: Enter your answers as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Using the consumption and saving data above and assuming planned investment is $19 billion, answer the following questions: a. What are saving and planned investment at the $390 billion level of domestic output? Saving = $ billion Investment = $ billion b. What are saving and actual investment at that level? Saving = $ billion Investment = $ billion c. What are saving and planned investment at the $350 billion level of domestic output? Saving = $ billion Investment = $ billion d. What are the levels of saving and actual investment? Saving = $ billion Investment = $ billion e. In which direction and by what amount will unplanned investment change as the economy moves from the $390 billion level of GDP to the equilibrium level of real GDP? Unplanned inventories will(Click to select) v by $ billion. f. From the $350 billion level of real GDP to the equilibrium level of GDP? Unplanned inventories will (Click to select) by $ billion.
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