regate Expenditures Model Assignment i7SBookYour research into a nation has yielded the following information:Autonomous expenditure (A) = $2,500Government purchases (G) = $2,400Gross investment (1) = $2,000Net exports (NX) = -$800Taxes (T) = $1,900 -MPC = 0.8SavedInstructions: Round your answers to nearest whole number. For the coefficient to Y, round your answer to two decimal places.a. Substitute the values above into the equation: AE = A + [MPC × (YT)] +I+G+ NX to determine the abbreviated equation foraggregate expenditures (AE).PrinterencesAE =Yb. Using the abbreviated equation you computed in part a, complete the table below.AggregateReal GDP Expenditures(Y)(dollars)7,00014,00021,000(AE)(dollars)$c. Knowing that AE = Y at the equilibrium level of output, what is the equilibrium level of output for this nation?Ye: $d. What is the expenditures multiplier for this economy?e. If government purchases increase by $1,600, from $2,400 to $4,000, what is the new equilibrium level of output?Ye: $< Prev7 of 18Next>HelpSave

GDP is the value of all the goods and services produced in an economy over a period of time within a…

Your research into a nation has yielded the following information: Autonomous expenditure (A) = $2,500 Gross investment (1) = $2,000 Government purchases (G) = $2,400 Net exports (NX) = -$800 Taxes (T) = $1,900 - MPC = 0.8 Instructions: Round your answers to nearest whole number. For the coefficient to Y, round your answer to two decimal places. a. Substitute the values above into the equation: AE = A + [MPC × (YT)] +I+G+ NX to determine the abbreviated equation for aggregate expenditures (AE). AE=[ Y b. Using the abbreviated equation you computed in part a, complete the table below. Aggregate Real GDP Expenditures (Y) (dollars) 0 7,000 (AE) (dollars) $ 14,000 21,000 c. Knowing that AE = Y at the equilibrium level of output, what is the equilibrium level of output for this nation? Ye: $ d. What is the expenditures multiplier for this economy? e. If government purchases increase by $1,600, from $2,400 to $4,000, what is the new equilibrium level of output? Yo: $5

Your research into a nation has yielded the following information: Autonomous expenditure (A) = $2,500 Gross investment (1) = $2,000 Government purchases (G) = $2,400 Net exports (NX) = -$800 Taxes (T) = $1,900 - MPC = 0.8 Instructions: Round your answers to nearest whole number. For the coefficient to Y, round your answer to two decimal places. a. Substitute the values above into the equation: AE = A + [MPC × (YT)] +I+G+ NX to determine the abbreviated equation for aggregate expenditures (AE). AE=[ Y b. Using the abbreviated equation you computed in part a, complete the table below. Aggregate Real GDP Expenditures (Y) (dollars) 0 7,000 (AE) (dollars) $ 14,000 21,000 c. Knowing that AE = Y at the equilibrium level of output, what is the equilibrium level of output for this nation? Ye: $ d. What is the expenditures multiplier for this economy? e. If government purchases increase by $1,600, from $2,400 to $4,000, what is the new equilibrium level of output? Yo: $5

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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Question

regate Expenditures Model Assignment i
7
S
Book
Your research into a nation has yielded the following information:
Autonomous expenditure (A) = $2,500
Government purchases (G) = $2,400
Gross investment (1) = $2,000
Net exports (NX) = -$800
Taxes (T) = $1,900 -
MPC = 0.8
Saved
Instructions: Round your answers to nearest whole number. For the coefficient to Y, round your answer to two decimal places.
a. Substitute the values above into the equation: AE = A + [MPC × (YT)] +I+G+ NX to determine the abbreviated equation for
aggregate expenditures (AE).
Print
erences
AE =
Y
b. Using the abbreviated equation you computed in part a, complete the table below.
Aggregate
Real GDP Expenditures
(Y)
(dollars)
7,000
14,000
21,000
(AE)
(dollars)
$
c. Knowing that AE = Y at the equilibrium level of output, what is the equilibrium level of output for this nation?
Ye: $
d. What is the expenditures multiplier for this economy?
e. If government purchases increase by $1,600, from $2,400 to $4,000, what is the new equilibrium level of output?
Ye: $
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