Scenario incomeexpenditure equilibrium gdp is 8000

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Macroeconomics
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Chapter 7 / Exercise 2
Macroeconomics
Roger A. Arnold
Expert Verified
3. Scenario: Income–Expenditure EquilibriumGDP is $8000, autonomous consumption is $500, and planned investment spending is $200. The marginal propensity to consume is 0.8. what is the consumption function?
We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Macroeconomics
The document you are viewing contains questions related to this textbook.
Chapter 7 / Exercise 2
Macroeconomics
Roger A. Arnold
Expert Verified
4. Scenario: Income–Expenditure EquilibriumGDP is $8000, autonomous consumption is $500, and planned investment spending is $200. The marginal propensity to consume is 0.8. if GDP is $3000, how much is unplanned inventory investment?
5. suppose the economy has no government spending and no foreign trade. With no taxes and transfers, real GDP is equal to disposable income (YD). The data in the table show consumption spending (C) and planned investment (IPlanned). If real GDP is $2500, what is the level of unplanned inventory investment –$2006. If expected future disposable income increases, AE will shift up7. If expected future disposable income decreases, AE will shift down
8. What is consumption spending when real GDP is $80 billion?
9. At which income level would there be positive unplanned investment?
10. In an economy with no international trade, no government expenditure, no transfers, and no taxes, disposable income is equal to GDP. Therefore, it follows that:
11. If GDP is greater than planned aggregate spending, then:
12. According to the paradox of thrift:
13. In the aggregate expenditures model, if aggregate expenditures are higher than real GDP:
14. At levels of GDP higher than the income-expenditure equilibrium:
15. The magnitude of the multiplier process that links planned aggregate spending to GDP is determined by:
16. The formula for the multiplier:
. If RGDP is $2000 & aggregate expenditures = 800, what is the multiplier?
17. If RGDP is $3000 billion, then unplanned investment will be:

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