Question

Time Taken:1:17:34 Alexa Anger: Attempt 1 Question 1 (1 point) Consider the information in the table below for a hypothetical economy. Suppose government purchases increase by $800. What will be the new equilibrium level of real GDP? Provide your answer in dollars rounded to two decimal places. Do not include any symbols, such as "$"," %, or in your answer. Real GDP Consumption (Y) (C) Planned Investment Government Purchases (G) Net Exports (NX) (0) 10,000 11,000 12,000 13,000 14,000 8,500 9,250 10,000 10,750 11,500 1,200 1.200 .200 1,200 1,200 P lanned Aggregate Expenditure (AE) 10,000 10,750 11,500 12,250 13,000 Your Answer: Answer Question 2 (1 point) What is the market

Answer 1

till know that equilibrium economy is established at Uоло- in the point Real GDPLY) = Planned Aggregatene - Expenditure. (AE) According to the information given in the table, YEAE = 10,000 So, the initial equilibrium level of real GDP is 10,000. An increase in Government by $800, the new level expenditure is, expenditure of aggregate RE'= RE +8DO =10000_7800 =_10.800 So, for the equilibrium to be established again the real GDP aual to the neue leuel of aggregate expenditure te y' - ng" → y'=10,800 So the correct answer is [10,sool.