Question

GDP с s lg х M AE 360 352 8 28 50 100 70 380 368 12 28 50 100 70 400 384 16 28 50 100 70 420 400 20 28 50 100 70 440 416 24 2When GDP = 360, AE=? Ą When GDP = 380, AE=? Ą When GDP=400, AE=? Ą When GDP=420, AE=? Ą When GDP=440, AE=? A When GDP=460, AEIf full employment GDP = 400 (Qf=400), what type of gap do we have and what is the size of the gap? answer in the form of ty

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Answer #1

AE= C+Ig+G+ NX

where NX= X-M

Now,

at GDP=360, AE= 352+28+70+ (50-100)

= 450-50

= 400

Hence, at GDP= 360, AE= 400

at GDP=380, AE= 368+28+70+ (50-100)

= 466-50

= 416

Hence, at GDP= 380, AE= 416

at GDP=400, AE= 384+28+70+ (50-100)

= 482-50

= 432

Hence, at GDP= 400, AE= 432

at GDP=420, AE= 400+28+70+ (50-100)

= 498-50

= 448

Hence, at GDP= 420, AE= 448

​​at GDP=440, AE= 416+28+70+ (50-100)

= 514-50

= 464

Hence, at GDP= 440, AE= 464

​​at GDP=460, AE= 432+28+70+ (50-100)

= 530-50

= 480

Hence, at GDP= 460, AE= 480

​​at GDP=480, AE= 448+28+70+ (50-100)

= 546-50

= 496

Hence, at GDP= 480, AE= 496

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