Consider the data presented in the table:

Actual Aggregate Expenditure or Output (Y) (billions of $)	Consumption (C) (billions of $)	Planned Investment (billions of $)	Government Spending (G) (billions of $)	Net Exports (NX) (billions of $)	Unplanned Investment (inventory change) (billions of $)
500	300	150	100	50
600	350
700	400
800	450
900	500

Instructions: In parts a, b, c, and e, enter your answers as a whole number. In part d, round your answer to two decimal places. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers.

Based on the assumptions of the aggregate expenditure model, fill in the columns for planned investment, government spending, and net exports.

a. For each level of actual aggregate expenditure, calculate unplanned inventory investment.

b. The equilibrium level of aggregate expenditure in this economy is: $ billion.

At the equilibrium level of aggregate expenditure, which of the following are true?

Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the option once to place a check mark. For incorrect answer(s), click the option twice to empty the box

check all that apply

• Unplanned investment is zero.unanswered
• Firms have no incentive to change the level of output.unanswered
• Production is maximized.unanswered
• Actual aggregate output equals the sum of spending in all sectors.unanswered

c. Suppose that planned investment increases by $50 billion.

The new equilibrium level of aggregate expenditure in this economy is: $ billion.

d. The marginal propensity to consume in this economy is: .

e. The expenditure multiplier in this economy is: .