Using the table below to answer the following questions. Assume all values represent trillions of dollars. Construct a graph of the Aggregate planned expenditure What is the equilibrium expenditure? Explain what happens at a real GDP of $4 trillion dollars. (Note the aggregate expenditures and the effects on inventories) What are your total autonomous expenditures? What is the marginal propensity to consume? Ignoring imports and income taxes, what is the multiplier? If investment increases by $1.5 trillion, what is the change in real GDP?
Using the table below to answer the following questions. Assume all values represent trillions of dollars. Construct a graph of the Aggregate planned expenditure What is the equilibrium expenditure? Explain what happens at a real GDP of $4 trillion dollars. (Note the aggregate expenditures and the effects on inventories) What are your total autonomous expenditures? What is the marginal propensity to consume? Ignoring imports and income taxes, what is the multiplier? If investment increases by $1.5 trillion, what is the change in real GDP?
Chapter13: Capital, Interest, Entrepreneurship, And Corporate Finance
Section: Chapter Questions
Problem 1.1P
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Using the table below to answer the following questions. Assume all values represent trillions of dollars.
- Construct a graph of the Aggregate planned expenditure
- What is the equilibrium expenditure?
- Explain what happens at a real
GDP of $4 trillion dollars. (Note the aggregate
- expenditures and the effects on inventories)
- What are your total autonomous expenditures?
- What is the marginal propensity to consume?
- Ignoring imports and income taxes, what is the multiplier?
- If investment increases by $1.5 trillion, what is the change in real GDP?
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