Homework Answers
a) At point A the planned aggregate expenditure is higher than real GDP,
b) At point B is the equal to the real GDP.
c) at point C it is less than real GDP.
d) it can be shown as a vertical distance between point A and 45* line.
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At point a in the graph to the right, planned aggregate
expenditure is
At point A...
Income (Yd) Consumption Expenditure Saving Investment Expenditure Government Expenditure Net Export Expenditure Aggregate Expenditure $8000...
Income (Yd) Consumption Expenditure Saving Investment Expenditure Government Expenditure Net Export Expenditure Aggregate Expenditure $8000 $11,000 $2,500 $5,000 $12,500 12,000 14,000 2,500 5,000 12,500 20,000 20,000 2,500 5,000 12,500 30,000 27,500 2,500 5,000 12,500 50,000 42,500 2,500 5,000 12,500 100,000 80,000 2,500 5,000 12,500 Calculate savings, MPC, MPS, break even income, and the equilibrium level of income (Y = AE = C + I + G +NX) in the above given information. Draw a graph showing disposable income (Yd)...
The following table shows the relationship between aggregate planned expenditure and real GOP in the hypothetical...
The following table shows the relationship between aggregate planned expenditure and real GOP in the hypothetical economy of Econoworld Real GDP bbons of 2007 dollars) Aggregate planned expenditure (billions of 2007 dollars) 100 200 300 420 1131 The level GPS 580 740 Ол ееn O Canadians' Wealth Rises Canadian net saving in the first quarter of 2017 was 522 billion Holdings of financial assets increased by 5162 bilion and the value of shares in corporations increased by $113 billion Explain...
14000 Aggregate Expenditures when P= 100 12000 10000 8000 Planned Aggregate Expenditure (AE) - 6000 -- 4000 - - 2000 07...
14000 Aggregate Expenditures when P= 100 12000 10000 8000 Planned Aggregate Expenditure (AE) - 6000 -- 4000 - - 2000 07 O 2000 4000 6000 8000 10000 12000 14000 Real GDP (Y) Aggregate Demand 140 Price Level 120 0 2000 4000 6000 8000 1000012000140001600018000 In the figures above, if autonomous spending rises for any reason other than a decrease in the price level, then: The Aggregate Expenditure curve will shift down and there will be a downward movement along the...
QUESTION 18 Suppose the equation of an economy's Aggregate Planned Expenditure function is AE - 75y + 800. What is...
QUESTION 18 Suppose the equation of an economy's Aggregate Planned Expenditure function is AE - 75y + 800. What is the value of the equilibrium level of real GDP (denoted Y*)? Y* = [X] QUESTION 19 Suppose the equation of an economy's Aggregate Planned Expenditure function is AE - 75y + 800. If real GDP - $1000, unplanned inventory investment will be $. so firms will have incentive to output next period.
Suppose the equation of an economy's Aggregate Planned Expenditure function is AE = 75y + 800....
Suppose the equation of an economy's Aggregate Planned Expenditure function is AE = 75y + 800. What is the value of the equilibrium level of real GDP (denoted Y*)? Y* = [x]
Create a graph for an aggregate demand curve. Use the price level for the vertical axis...
Create a graph for an aggregate demand curve. Use the price level for the vertical axis and the Real GDP for the horizontal axis. Explain in a graph how it is related to the income expenditure model
$10,0001 $8,000 Aggregate expenditure $6,000 Aggregate Expenditure $4,000 $2,000 $0 $0 $2,000 $4,000 $6,000 $8,000 $10,000...
$10,0001 $8,000 Aggregate expenditure $6,000 Aggregate Expenditure $4,000 $2,000 $0 $0 $2,000 $4,000 $6,000 $8,000 $10,000 Real GDP (Y) 1. The premise of the Keynesian aggregate expenditure model is that the amount of goods and services produced, and therefore the level of employment, depends directly on the level of total expenditures Refer to the above graph and answer the following questions: a. For the GDP level of $5000, GDP (output from producers) is less than real domestic output desired by...
Table 27.3.1 The following table shows the relationship between aggregate planned expenditure and real GDP in...
Table 27.3.1 The following table shows the relationship between aggregate planned expenditure and real GDP in the hypothetical economy of Econoworld. Real GDP (billions of 2007 dollars) Aggregate planned expenditure (billions of 2007 dollars) 100 260 420 580 740 200 400 600 800 18) Refer to Table 27.3.1. If investment increases by $25 billion, the real GDP becomes A) $525 billion. B) $625 billion. C) $725 billion D) $600 billion. E) $675 billion.
Which of the following best describes the relationship between aggregate expenditure and real GDP? O A....
Which of the following best describes the relationship between aggregate expenditure and real GDP? O A. If aggregate expenditure falls short of real GDP, inventories will accumulate and real GDP and aggregate income will fall in future. O B. If aggregate expenditure falls short of real GDP, inventories will decrease and real GDP and aggregate income will fall in future. O c. If aggregate expenditure falls short of real GDP, inventories will accumulate and real GDP and aggregate income will...
The graph to the right shows a 45°-line (Keynesian cross) diagram. The economy is currently in...
The graph to the right shows a 45°-line (Keynesian cross) diagram. The economy is currently in macroeconomic equilibrium at output level Y. Real aggregate expenditures, AE Y = AE Suppose that the price level decreases. 1) Use the line tool to show a possible position for the new aggregate expenditures line. Label this line AE,. AEO Note: if you are not prompted for a label, you have used the wrong drawing tool. 2) Use the point drawing tool to show...
The following table shows the relationship between aggregate planned expenditure and real GOP in the hypothetical economy of Econoworld Real GDP bbons of 2007 dollars) Aggregate planned expenditure (billions of 2007 dollars) 100 200 300 420 1131 The level GPS 580 740 Ол ееn O Canadians' Wealth Rises Canadian net saving in the first quarter of 2017 was 522 billion Holdings of financial assets increased by 5162 bilion and the value of shares in corporations increased by $113 billion Explain...
14000 Aggregate Expenditures when P= 100 12000 10000 8000 Planned Aggregate Expenditure (AE) - 6000 -- 4000 - - 2000 07 O 2000 4000 6000 8000 10000 12000 14000 Real GDP (Y) Aggregate Demand 140 Price Level 120 0 2000 4000 6000 8000 1000012000140001600018000 In the figures above, if autonomous spending rises for any reason other than a decrease in the price level, then: The Aggregate Expenditure curve will shift down and there will be a downward movement along the...
QUESTION 18 Suppose the equation of an economy's Aggregate Planned Expenditure function is AE - 75y + 800. What is the value of the equilibrium level of real GDP (denoted Y*)? Y* = [X] QUESTION 19 Suppose the equation of an economy's Aggregate Planned Expenditure function is AE - 75y + 800. If real GDP - $1000, unplanned inventory investment will be $. so firms will have incentive to output next period.
Suppose the equation of an economy's Aggregate Planned Expenditure function is AE = 75y + 800. What is the value of the equilibrium level of real GDP (denoted Y*)? Y* = [x]
$10,0001 $8,000 Aggregate expenditure $6,000 Aggregate Expenditure $4,000 $2,000 $0 $0 $2,000 $4,000 $6,000 $8,000 $10,000 Real GDP (Y) 1. The premise of the Keynesian aggregate expenditure model is that the amount of goods and services produced, and therefore the level of employment, depends directly on the level of total expenditures Refer to the above graph and answer the following questions: a. For the GDP level of $5000, GDP (output from producers) is less than real domestic output desired by...
Table 27.3.1 The following table shows the relationship between aggregate planned expenditure and real GDP in the hypothetical economy of Econoworld. Real GDP (billions of 2007 dollars) Aggregate planned expenditure (billions of 2007 dollars) 100 260 420 580 740 200 400 600 800 18) Refer to Table 27.3.1. If investment increases by $25 billion, the real GDP becomes A) $525 billion. B) $625 billion. C) $725 billion D) $600 billion. E) $675 billion.
Which of the following best describes the relationship between aggregate expenditure and real GDP? O A. If aggregate expenditure falls short of real GDP, inventories will accumulate and real GDP and aggregate income will fall in future. O B. If aggregate expenditure falls short of real GDP, inventories will decrease and real GDP and aggregate income will fall in future. O c. If aggregate expenditure falls short of real GDP, inventories will accumulate and real GDP and aggregate income will...
The graph to the right shows a 45°-line (Keynesian cross) diagram. The economy is currently in macroeconomic equilibrium at output level Y. Real aggregate expenditures, AE Y = AE Suppose that the price level decreases. 1) Use the line tool to show a possible position for the new aggregate expenditures line. Label this line AE,. AEO Note: if you are not prompted for a label, you have used the wrong drawing tool. 2) Use the point drawing tool to show...
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