28. Refer to the accompanying figure. Planned Aggregate Expenditure, PAE 4,750 4,000 3,250 1,000 45° B. 3,250. C. 4,000. D. 4,750. 3,000 4,000 5,000 Y" PAE = 1,000+ 0.75Y Output, Y Based on the Keynesian cross diagram, short-run equilibrium output equals: A. 3,000.

28. Refer to the accompanying figure. Planned Aggregate Expenditure, PAE 4,750 4,000 3,250 1,000 45° B. 3,250. C. 4,000. D. 4,750. 3,000 4,000 5,000 Y" PAE = 1,000+ 0.75Y Output, Y Based on the Keynesian cross diagram, short-run equilibrium output equals: A. 3,000.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter24: The Aggregate Demand/aggregate Supply Model

Section: Chapter Questions

Problem 4SCQ: In the AD/AS model, what prevents the economy from achieving equilibrium at potential output?

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Question

28. Refer to the accompanying figure.
Planned Aggregate Expenditure, PAE
PAE = 1,000+ 0.75Y
*
4,750
4,000
3,250
1,000
45°
B. 3,250.
C. 4,000.
D. 4,750.
3,000 4,000 5,000
Y*
Output, Y
Based on the Keynesian cross diagram, short-run
equilibrium output equals:
A. 3,000.

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Discussions - Discuss the following with reasonable explanations: 1. Refer to the accompanying figure. Planned Aggregate Expenditure, PAE 4.750 PANDANGAN DAN KESINETE SINT MAARTENKE 4.000 3250 #} #1124 0 108 $ # # *************** 3.000 4.000 5,000 Y PAE=1,000+ 0.75Y Output, Y I Based on the Keynesian cross diagram, if output equals 5,000, what kind of output gap exists in such a situation and how do firms respond to the gap?
uestion 28 ot yet swered arked out of 0 Flag estion In the Keynesian AE model, if the autonomous components of consumption, investment, government spending, and net export spending total $200 billion and the marginal propensity to spend is 0.8, under what circumstances will unplanned changes in inventory be zero? a. when output is $160 billion b. when output is $250 billion C. when output is $1000 billion d. when output is $1600 billion cross out cross out cross out cross out
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