Suppose the following consumption function.

Upper C equals Upper C $0$ plus Upper C $1$ left parenthesis Upper Y minus Upper T right parenthesis

Let

Upper C $0=29$

Upper C $1=0\mathrm{.}85$

Upper I $=100$

Upper G $=50$

Upper T $=23$

$$Also$,$ let the initial value of production be the$$ following:

Upper Y $0=1040$

Calculate the implied value of Z$($call it Upper Z $0).$ Give the answer as an integer.

Upper Z $0=$

$$

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Calculate the change in inventories. If inventories$$ decline, give a negative answer. Give the answer as an integer.

Upper Delta inv $0=$

$$

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Based on your answer for the change in$$ inventories, how much will the producer produce next$$ period?

Upper Y $1=$

$$

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Based on your answer for Upper Y $1,$ what will demand be next$$ period?

Upper Z $1=$

$$

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Based on your previous two$$ answers, what is the second change in$$ inventories?

Upper Delta inv $1=$

$$

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