The table shows real GDP, Y, consumption expenditure, C, investment, I, government expenditure on goods and services, G, exports, X, imports, M, and aggregate planned expenditure, AE, in trillions of dollars. Taxes are constant. If government expenditure increases to $1.2 trillion but other things remain the same, what is equilibrium expenditure and what is the multiplier? >>> Answer to 1 decimal place. The new equilibrium expenditure is $ trillion. Planned expenditure Y с G M AE 0 0.4 1.4 0.4 1.0 0.0 3.2 2 2.0 1.4 0.4 1.0 0.4 T 4 3.6 1.4 0.4 1.0 0.8 5.6 6 5.2 1.4 0.4 1.0 S 6.8 8 6.8 R 0.4 1.0 1.6 8.0 120 Q 1.4 0.4 1.0 2.0 9.2 12 10.0 1.4 0.4 1.0 2.4 10.4

The table shows real GDP, Y, consumption expenditure, C, investment, I, government expenditure on goods and services, G, exports, X, imports, M, and aggregate planned expenditure, AE, in trillions of dollars. Taxes are constant. If government expenditure increases to $1.2 trillion but other things remain the same, what is equilibrium expenditure and what is the multiplier? >>> Answer to 1 decimal place. The new equilibrium expenditure is $ trillion. Planned expenditure Y с G M AE 0 0.4 1.4 0.4 1.0 0.0 3.2 2 2.0 1.4 0.4 1.0 0.4 T 4 3.6 1.4 0.4 1.0 0.8 5.6 6 5.2 1.4 0.4 1.0 S 6.8 8 6.8 R 0.4 1.0 1.6 8.0 120 Q 1.4 0.4 1.0 2.0 9.2 12 10.0 1.4 0.4 1.0 2.4 10.4

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter9: Demand-side Equilibrium: Unemployment Or Inflation?

Section: Chapter Questions

Problem 6TY

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