A Calculate Ae Given The Information Below And Completely Fill In The Table There Is A Practice Exercise In Module 7 1 (89.37 KiB) Viewed 13 times
A Calculate Ae Given The Information Below And Completely Fill In The Table There Is A Practice Exercise In Module 7 2 (27.55 KiB) Viewed 13 times
a. Calculate AE given the information below and completely fill in the table. There is a practice exercise in Module 7. Please attempt the practice first. Examples are provided in Chapter 11. (3 marks) b. Where is equilibrium in this economy based on the table? State the level, don't just point to it or highlight it. (1 mark) c. Using the injections-withdrawals approach, demonstrate that the point you chose in part b is the equilibrium. At this point withdrawals = injections. Go to Chapter 11 if you forget how this is calculated. (1 mark) d. If the government increased its spending, what impact will this have on AE and equilibrium? Explain why. (2 marks) Investments: $27 Government Spending: $28 I Taxes Total Income (AO) 102 115 125 145 145 165 190 205 220 260 270 102 8 10 13 15 18 20 22 25 30 35 40 46 Disposable Income C 110 115 118 120 126 132 139 150 159 190 200 225 S 1 G AE
Item (Name the item here) Totals Injections-Withdrawals Approach Injections (place the $ amount in this column) Withdrawals (place the $ amount in this column)
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!