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e)If planned investment increases by 70 to 170, what is the new equilibrium income?
d)If actual GDP were 900, what difference between planned and actual investment would result? Why?Size of the multiplier:The aggregate expenditure would be810. Due to the difference between the aggregate expenditure and Y,inventories areincreasedto fill the gap. Planned investment, including planned inventory investment is 100 butthe unplanned changes to inventories results in an actual investment of8002.