ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Consider the data presented in the table:
Actual
aggregate
expenditure
or output Consumption Planned
(Y)
(C)
(billions
(billions
of $)
of $)
500
300
600
350
700
400
800
450
900
500
Unplanned
Government Net investment
spending exports (inventory
(NX) change)
investment (G)
(billions (billions (billions (billions
of $)
of $)
of $)
of $)
100
-100
-50 S
ol C
150
150 C
150 S
150 C
150 C
100
100 C
100 C
100 C
Based on the assumptions of the aggregate expenditure model, fill in the
columns for planned investment, government spending, and net exports.
Instructions: Enter the values into the table above.
50
50 €
50 C
50 S
50 S
a. For each level of actual aggregate expenditure, calculate unplanned
inventory investment.
correct.
Instructions: Enter the values into the table above. If the value is negative, then
be sure to enter a minus sign.
b. What is the equilibrium level of aggregate expenditure in this economy?
Instructions: Enter a number rounded to the nearest whole number.
Answer is complete
70d correct.
correct.
c. Suppose that planned investment increases by $50 billion. What is the new
equilibrium level of aggregate expenditure in this economy?
Instructions: Enter a number rounded to the nearest whole number.
Answer is complete
xhot entirely
correct.
d. What is the marginal propensity to consume in this economy?
Instructions: Enter a number rounded to two decimal places as necessary.
X Answer is complete
0.0xhot entirely
50
100 C
e. What is the expenditure multiplier in this economy?
Instructions: Enter a number rounded to two decimal places as necessary.
X Answer is complete
0.0Xhot entirely
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Transcribed Image Text:Consider the data presented in the table: Actual aggregate expenditure or output Consumption Planned (Y) (C) (billions (billions of $) of $) 500 300 600 350 700 400 800 450 900 500 Unplanned Government Net investment spending exports (inventory (NX) change) investment (G) (billions (billions (billions (billions of $) of $) of $) of $) 100 -100 -50 S ol C 150 150 C 150 S 150 C 150 C 100 100 C 100 C 100 C Based on the assumptions of the aggregate expenditure model, fill in the columns for planned investment, government spending, and net exports. Instructions: Enter the values into the table above. 50 50 € 50 C 50 S 50 S a. For each level of actual aggregate expenditure, calculate unplanned inventory investment. correct. Instructions: Enter the values into the table above. If the value is negative, then be sure to enter a minus sign. b. What is the equilibrium level of aggregate expenditure in this economy? Instructions: Enter a number rounded to the nearest whole number. Answer is complete 70d correct. correct. c. Suppose that planned investment increases by $50 billion. What is the new equilibrium level of aggregate expenditure in this economy? Instructions: Enter a number rounded to the nearest whole number. Answer is complete xhot entirely correct. d. What is the marginal propensity to consume in this economy? Instructions: Enter a number rounded to two decimal places as necessary. X Answer is complete 0.0xhot entirely 50 100 C e. What is the expenditure multiplier in this economy? Instructions: Enter a number rounded to two decimal places as necessary. X Answer is complete 0.0Xhot entirely
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