Question: Please Answer the Following Consider the data in the table below. a) At each level of actual aggregate expenditure, calculate the unplanned inventory investment. b)

Please Answer the Following

Please Answer the Following Consider the data in the table below. a)

Consider the data in the table below. a) At each level of actual aggregate expenditure, calculate the unplanned inventory investment. b) What is the equilibrium level of aggregate expenditure in this economy? c) Now suppose that planned investment increases by $ 50 billion. What is the new equilibrium level of aggregate expenditure in this economy? d) What is the marginal propensity to consume (MPC)? Show your work. e) What is the value of the multiplier (labelled K)? Show your work. f) Use that value of the multiplier in order to determine the change in the equilibrium level of aggregate expenditure that results from that increase in planned investment spending. actual unplanned aggregate consumption planned government net exports expenditure (C), billions of Investment investment (1), billions of spending (G), (NX), billions (inventory or output (Y), $ billions of $ $ billions of $ of $ change), billions of $ 500 300 150 100 50 600 350 150 100 50 700 400 150 100 50 800 450 150 100 50 900 500 150 100 50

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