Economics:
10th Edition
ISBN: 9781285859460
Author: BOYES, William
Publisher: Cengage Learning
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Question
Chapter 10, Problem 2E
To determine
To calculate:
The equilibrium level of real GDP in a closed economy with the help of the mentioned table. Also, calculate the value of spending multiplier.
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At a aggregate output level of $200 billion what is planned aggregate expenditure?
Answer the question on the basis of the following table for a particular country in which C is consumption expenditures, Ig is gross investment expenditures, G is government expenditures, X is exports, and M is imports. All figures are in billions of dollars. Each question is independent of other question using the same table, unless otherwise stated.
Price Level
C
Ig
G
X
M
Real GDP
128
$18
$2
$3
$1
$5
125
$20
$4
$3
$2
$4
122
$22
$6
$3
$3
$3
119
$24
$8
$3
$4
$2
116
$26
$10
$3
$5
$1
Refer to the table. The real-balances effect of changes in the price level is:
Group of answer choices
shown by columns (1) and (5) of the table.
shown by columns (1) and (4) of the table.
not shown by the data in the table.
shown by columns (1) and (2) of the table.
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