Using the table below to answer the following questions. Assume all values represent trillions of dollars.            Construct a graph of the Aggregate planned expenditure  What is the equilibrium expenditure?  Explain what happens at a real GDP of $4 trillion dollars. (Note the aggregate  expenditures and the effects on inventories)  What are your total autonomous expenditures?  What is the marginal propensity to consume?  Ignoring imports and income taxes, what is the multiplier?  If investment increases by $1.5 trillion, what is the change in real GDP?

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Using the table below to answer the following questions. Assume all values represent trillions of dollars. 

 

 

 

 

 

  1. Construct a graph of the Aggregate planned expenditure 
  1. What is the equilibrium expenditure? 
  1. Explain what happens at a real GDP of $4 trillion dollars. (Note the aggregate 
  1. expenditures and the effects on inventories) 
  1. What are your total autonomous expenditures? 
  1. What is the marginal propensity to consume? 
  1. Ignoring imports and income taxes, what is the multiplier? 
  1. If investment increases by $1.5 trillion, what is the change in real GDP? 
A
B
с
D
E
F
Real GDP
Y
0.00
7.00
14.00
21.00
28.00
35.00
Consumption
Expenditure Investment
C
I
1.00
1.50
6.00
1.50
11.00
1.50
16.00
1.50
21.00
1.50
26.00
1.50
NOTEASO
VANZEN
Government
Expenditure
G
2.00
2.00
2.00
2.00
2.00
2.00
Exports
X
1.50
1.50
1.50
1.50
1.50
1.50
Aggregate
Planned
Expenditure
6.00
11.00
16.00
21.00
26.00
31.00
Transcribed Image Text:A B с D E F Real GDP Y 0.00 7.00 14.00 21.00 28.00 35.00 Consumption Expenditure Investment C I 1.00 1.50 6.00 1.50 11.00 1.50 16.00 1.50 21.00 1.50 26.00 1.50 NOTEASO VANZEN Government Expenditure G 2.00 2.00 2.00 2.00 2.00 2.00 Exports X 1.50 1.50 1.50 1.50 1.50 1.50 Aggregate Planned Expenditure 6.00 11.00 16.00 21.00 26.00 31.00
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