Question: Use the following graph to answer the questions. a. What is the value of equilibrium real GDP? b. What is the value of the MPC?

Use the following graph to answer the questions.

a. What is the value of equilibrium real GDP?

b. What is the value of the MPC?

c. What is the value of the multiplier?

d. What is the value of unplanned changes in inventories when real GDP has each of the following values?

i. $10 trillion

ii. $12 trillion

iii. $14 trillion

Real aggregate өxpenditure, AE (trillions of 2009 dollars) Y = AE AE $13.6 *..*.....-.... ... ..-.... 10.4 45° $10 12

Real aggregate xpenditure, AE (trillions of 2009 dollars) Y = AE AE $13.6 *..*.....-.... ... ..-.... 10.4 45 $10 12 14 Real GDP, Y (trillions of 2009 dollars)

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