Exhibit 19-3 Keynesian aggregate expenditures model 16 14 Real aggregate 12 expenditures 10 8 6 (trillions of dollars per year) 4 2 AE 45° 0 2 4 6 8 10 12 14 16 18 Real GDP (trillions of dollars per year) As shown in Exhibit 19-3, if GDP is S6 trillion, the economy experiences unplanned inventory: a. accumulation of $6 trillion. O b. depletion of $2 trillion. O c. accumulation of $2 trillion. O d. depletion of $6 trillion.

Exhibit 19-3 Keynesian aggregate expenditures model 16 14 Real aggregate 12 expenditures 10 8 6 (trillions of dollars per year) 4 2 AE 45° 0 2 4 6 8 10 12 14 16 18 Real GDP (trillions of dollars per year) As shown in Exhibit 19-3, if GDP is S6 trillion, the economy experiences unplanned inventory: a. accumulation of $6 trillion. O b. depletion of $2 trillion. O c. accumulation of $2 trillion. O d. depletion of $6 trillion.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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illustrates and how it is related to the aggregate demand curve. 3. Figure 11.8 shows the aggregate expenditure curve when the price level is 110. When the price level rises to 120, the AE curve shifts vertically downwards from AE, by $1 trillion. When the price level falls to 100, the AE curve shifts vertically upwards from AE, by $1 trillion. Figure 11.8: FIGURE 11.8 Short Answer Problem 10 (a) 8 Price level (GDP deflator) Aggregate planned expendit (trillions o FIGURE 11.9 Short Answer Problem 10 (b) 130 a. Draw two new AE curves in figure 11.8 for the price levels of 100 and 120. What are the equilibrium levels of aggregate expenditures for these two price levels? Label as 'b' the equilibrium point when the price level is 100 and 'c' as price level is 120. 120 b. Use figure 11.8 to obtain three points 'a', 'b' and 'c' on the aggregate demand curve. Plot these three points on figure 11.9. Assume that the aggregate demand curve is linear and draw the AD curve on figure 11.9. Figure…
1.The marginal propensity to consume in this economy is 2.The equilibrium level of output in this economy is
Price level (GDP price Index 2012-100) Pocential AS 130 GDP 120 110 100 90 AD 19.0 195 20.0 20.5 21.0 21.5 Real GDP (trillons of 2012 dollars) In the figure above, the economy is at an equilibrium with real GDP of $20 trillion and a price level of 110. As the economy moves toward its ultimate equilibrium, the curve shifts because O a. aggregate supply; leftward; the money wage rate rises O b. aggregate supply; rightward; the money wage rate falls O c. aggregate demand; leftward; the money wage rate rises d. potential GDP; leftward; the money wage rate falls O e. aggregate demand; rightward; the money wage rate falls
Planned AE (PAE, trillion $) 45° AE = Y PAE₂= 7+0.5Y PAE = 5 +0.5Y PAE = 3 +0.5Y Actual AE (GDP, Y, trillion $) Refer to a graph above. Suppose the the economy has the planned aggregate expenditure of PAE2 and the potential GDP is $10 trillion. Which of the following statements about this economy is false? O There is an inflationary output gap of $4 trillion. O In order for this economy to get back to the potential GDP, the PAE curve needs to shift to the right The economy is in an expansion. O The economy produces more than spends.
these multiple choice Questions from MACROECONOMICS Course.I need the final answer,please.
LAS 100 90 X 80 70 110 60 0 320 360 below full-employment; 40 above full-employment; 20 below full-employment; 20 above full-employment; 40 actual; 0 SAS 400 440 480 520 Real GDP (billions of 2007 dollars) Figure 10.3.1 AD Refer to Figure 10.3.1. The economy is at its short-run macroeconomic equilibrium. There is a difference between equilibrium real GDP and potential GDP of $ billion.
PLEASE EXPLAIN IT
Quèstion 1 In an open mixed economy, the inflationary expenditure gap may be described as the O A. excess of Sa + M+T over lg + X+ G at the full-employment GDP. O B. excess of GDP over Ca + lg +Xn + G at the full-employment output. OC excess of Ca + Ig + Xn + G at the full-employment GDP. O D. extra consumption that occurs when investment increases in a full-employment economy.
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9. Suppose Dina calculates her permanent income by adaptive expectations. Year 2010 Dina's permanent income was 68,000, and year2011 actual income is 71,000. Assume that, long-run marginal to consume is 0.90 and short-run marginal propensity to consume is 0.18. What is her consumption expenditure year 2011? * O 51,740 O 41,740 O 59,500 O 44,750 none of the above is correct
COURSE: MACROECONOMICS - IS-LM and/or MUNDELL FLEMING MODELS Refer to 2 different models (and/or conditions) under which an increase in the amount of money circulating in the economy has a NULL impact on GDP. Then, refer to 2 different models (and/or conditions) under which an increase in the amount of money circulating in the economy has a MAXIMUM impact on GDP. EXPLAIN very briefly the mechanism by which each model generates that NULL or MAXIMUM impact on GDP. Hint: 2 conditions under increase of M (money) and how impact null (zero) and maximum on GDP. Example, considering both fiscal or monetary policies or liquidity trap model. Please graph and explain on detail both cases.
2. Consider a Keynesian IS-LM model for national income: Y = C(Y-T) + I (r) + G L(r,Y)= M³ IS: LM: where we consider Y and r as the endogenous variables and G, M³, and T as the exogenous variables. (a) Find the effect of a lump-sum tax, T, change on Y, i.e., OY/OT, using the implicit function theorem.