econ lab3 question 1

Question 2 [16 points] Research by a team of expert economists has uncovered the consumption and import functions and produced a forecast of planned investment and exports tor the economy of Glamourburg as reported below: StSEESiBEiSGSBtBE a) What equilibrium real GDP would Glamourburg produce? Equilibrium real GDP: I b) What are the marginal propensities to consume and import in Glamourburg. Note: Keep as much precision as possible during your calculations. Your nal answer should be accurate to at least two decimal places. Marginal propensity to consume: I Marginal propensity to import: I c) What is the size of the multiplier? Note: Keep as much precision as possible during your calculations. Your nal answer should be accurate to at least two decimal places. Size of the multiplier: I d) If actual GDP were 1,100, what difference between planned and actual investment would result? Why? The aggregate expenditure would be - . Due In the difference between the aggregate expenditure and Y. inventories are _ to ll the gap. Planned investment, including planned inventory investment is 100 but the unplanned changes to inventories results in an actual investment of - o) If planned investment increases by 30 to 130, what is the new equilibrium income? New equilibrium income