Question

UUUIU. U UW PL 21 of 22 (19 complete) HW Scor End of Chapter A.3 Consider the macroeconomic model shown below: C = 750 + 0.50Y 1 = 2,000 G = 1,500 NX = 100 Y=+I+G+ NX Consumption function Planned investment function Government spending function Net export function Equilibrium condition Fill in the following table. (Enter your responses as integers.) Aggregate Expenditures (AE) Unplanned Change in Inventories GDP $4,350 $13,050 Enter your answer in the edit fields and then click Check Answer All parts showing Clear All Check Answer

Answer 1

Answer:

(a) AE = C + I + G + NX

AE = 750 + 0.50Y + 2000 + 1500 - 100

AE = 4150 + 0.50Y

(b) Unplanned change in inventories = GDP (Y) – AE

Therefore:

GDP(Y)	AE($)	Unplanned change in inventories($)
$4,350	4150 + 0.50Y = 4150 + 0.50(4350) = 6,325	4,350 – 6,325 = -1,975
$13,050	4150 + 0.50Y = 4150 + 0.50(13,050) = 10,675	13,050 – 10,675 = 2,375