Your research into a nation has yielded the following information: Autonomous expenditure (A) = $3,400 Gross investment
Posted: Wed Jul 06, 2022 5:54 am
Your research into a nation has yielded the followinginformation:
Autonomous expenditure (A) = $3,400
Gross investment (I) = $2,300
Government purchases (G) =$2,700
Net exports (NX) = -$1,000
Taxes (T) = $2,200
MPC = 0.8
Instructions: Round your answers tonearest whole number. For the coefficient to Y, round your answerto two decimal places.
a. Substitute the values above into the equation: AE = A +[MPC × (Y – T)] + I + G + NX to determine the abbreviated equationfor aggregate expenditures (AE).
AE = + Y
b. Using the abbreviated equation you computed in part a,complete the table below.
c. Knowing that AE = Y at the equilibrium level of output, whatis the equilibrium level of output for this nation?
Ye: $
d. What is the expenditures multiplier for this economy?
e. If government purchases increase by $1,300, from $2,700 to$4,000, what is the new equilibrium level of output?
Ye: $
Autonomous expenditure (A) = $3,400
Gross investment (I) = $2,300
Government purchases (G) =$2,700
Net exports (NX) = -$1,000
Taxes (T) = $2,200
MPC = 0.8
Instructions: Round your answers tonearest whole number. For the coefficient to Y, round your answerto two decimal places.
a. Substitute the values above into the equation: AE = A +[MPC × (Y – T)] + I + G + NX to determine the abbreviated equationfor aggregate expenditures (AE).
AE = + Y
b. Using the abbreviated equation you computed in part a,complete the table below.
c. Knowing that AE = Y at the equilibrium level of output, whatis the equilibrium level of output for this nation?
Ye: $
d. What is the expenditures multiplier for this economy?
e. If government purchases increase by $1,300, from $2,700 to$4,000, what is the new equilibrium level of output?
Ye: $