What is the US GDP for the first quarter and second quarter of 2020? What is the personal consumption expenditures for the first quarter and second quarter of 2020? Go to the website for the Bureau of Economic Analyses (BEA): https://www.bea.gov/ Section 1: Domestic Product and Income; Table 1.1.5 1.2. Use the information in Table 1 to analyze aggregate expenditures (AE) model below (Figure 1. Equilibrium in a Private Closed Economy). (table 1 and figure 1 are in the attachments) 1.3. Identify the mistake and explain why the graph of the aggregate expenditures line does not correctly illustrate the economy's equilibrium.
This question has four parts. (its not a writing assignment, just asking for a numerical value or simple answer)
1.1. What is the US GDP for the first quarter and second quarter of 2020? What is the personal consumption expenditures for the first quarter and second quarter of 2020?
Go to the website for the Bureau of Economic Analyses (BEA): https://www.bea.gov/
Section 1: Domestic Product and Income; Table 1.1.5
1.2. Use the information in Table 1 to analyze aggregate expenditures (AE) model below (Figure 1. Equilibrium in a Private Closed Economy). (table 1 and figure 1 are in the attachments)
1.3. Identify the mistake and explain why the graph of the aggregate expenditures line does not correctly illustrate the economy's equilibrium.
1.4. Create a graph for the aggregate expenditures (AE) model using the data from Table 1: A Private Closed Economy.
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
![D
U
Aggregate
Expenditures
388
372
356
340
324
308
292
276
260
444
HI,
240 260 280 300 320 340 360 350 400
45 degree
AE
Real Domestic Output](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fab307684-a64f-452f-8abe-6df9fec5e4e1%2Fa403f81a-823b-4da8-8743-52e3296f1d60%2Fdokh00s_processed.png&w=3840&q=75)
![Real domestic
Consumption Saving Investment
output (GDP=DI) (billions) (billions) (billions)
(billions)
$240
260
280
300
320
340
360
380
400
$244
260
276
292
308
324
340
356
372
$-4
4
8
262220
12
16
24
28
$16
16
16
16
16
16
16
16
16
Aggregate
Expenditures
(billions)
$260
276
292
308
324
340
356
372
388](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fab307684-a64f-452f-8abe-6df9fec5e4e1%2Fa403f81a-823b-4da8-8743-52e3296f1d60%2F2b3bds_processed.png&w=3840&q=75)
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