Question: Calculating the aggregate expenditure. The table provide the information that can be used. INFORMATION FOR QUESTIONS 3 AND 4 Table 1. For each level of

Calculating the aggregate expenditure. The table provide the information that can be used.

Calculating the aggregate expenditure. The table provide the information that can beused. INFORMATION FOR QUESTIONS 3 AND 4 Table 1. For each level

INFORMATION FOR QUESTIONS 3 AND 4 Table 1. For each level of output are shown the resulting levels of the elements of Aggregate Expenditure. Refer to this table for questions Output Consumption Investment Government Spending Net Exports 100 80 15 15 6 140 110 20 15 4 180 140 25 15 2 220 170 30 15 0 260 200 35 15 -2 300 230 40 15 -4 From the data in Table 1, when GDP (output) is 300, o inventories will increase, and this inventory adjustment was not anticipated. 0 inventories will remain constant; there is no unanticipated inventory adjustment. 0 there may be iinventory adjustments, but it is difcult to tell in what direction, since it is unanticipated. o inventories will decrease, and this inventory adjustment was not anticipated. QUESTION 5 Using the data in Table 1, by how much should the level of income have increased after two rounds of the multiplier process if the economy begins at its equilibrium position and increases government spending by 40? O68 O40 O70 O77 O73

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