Economics (7th Edition) (What's New in Economics)
7th Edition
ISBN: 9780134738321
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
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Question
Chapter 23, Problem 23.1RDE
Subpart (a):
To determine
Real exports of goods and services.
Subpart (b):
To determine
Impact on the Real exports of goods and services.
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Assume that imports into an economy equal $125 billion and exports equal $75 billion.
Use the information in the following table, and information given on imports and exports, to determine the level of unplanned inventory at each level
of real GDP.
Possible Levels of
Employment
(Millions of workers)
40
45
50
55
60
65
70
Employment, Output, Consumption, and Unplanned Inventory
Real GDP (Output) Equals Disposable
Income
(Billions of dollars)
of net exports, the equilibrium real GDP is $
325
375
425
475
525
575
625
Consumption
(Billions of
dollars)
300
325
350
375
400
425
450
Investment
(Billions of
dollars)
125
billion, and the equilibrium employment level is
125
125
125
125
125
125
Given the values of imports and exports, the effect of net exports (relative to the case where net exports are excluded) on this economy is to
unplanned inventory investment at all levels of real GDP and to
the level of real GDP at equilibrium. With the inclusion
millions workers.
Unplanned
Inventory…
5:06
A & & & P M
Page 4 of 5
QUESTION 4
The figure below shows the planned Aggregate Expenditure function for a hypothetical economy
(AEp = 1,000 + 0.5 * Y). In this economy, taxes and transfers are equal to zero, so YD =Y. What
is the value of unplanned investment expenditure (Iµ) when GDP = 3,000? Suppose that, next
period, autonomous consumption increased by 100 and every thing else remained the same.
Under these new circumstances, what would the value of unplanned investment be when GDP =
3,000?
5,000
4, 500
4, 000
3, 500
3,000
AEp = 1,000 + 0.5*Y
2, 500
2000
1, 500
1,a00
500
500
1,000
1, 500
2,000
2 500
3,000
3,500
4,000
4,500
5,000
REAL GDP
Page 5 of 5
QUESTION A5
a. Suppose that some kind of significant economic event has occurred, and you learn that
the event will de finitely cause the aggregate price level to decrease, but that its effect on
short-run equilibrium real GDP cannot be determined without knowing the exact
PLANNED AGGREGATE EXPENDITURE
13:06 * O O •
A O * l 70%i
Answers > Economics > Macroeconomics
Question #102948
In the circular flow of income and
spending, that is, the basic flow of
income and spending between
households and firms
supplemented by the foreign,
financial and government
se
rs...
1. Exports are leakage from the
circular flow
2. Savings are injections into the
circular flow
3. Imports are injections into the
circular flow
4. Taxes are leakages from the
circular flow
B. If the South African reserve
Bank decides to decrease the
repo rate, the quantity of money
created will. . (Ceteris
paribus).
Chat
1
Dooreace
II
Chapter 23 Solutions
Economics (7th Edition) (What's New in Economics)
Ch. 23.A - Prob. 1RQCh. 23.A - Prob. 2RQCh. 23.A - Prob. 3RQCh. 23.A - Prob. 4RQCh. 23 - Prob. 23.1.1RQCh. 23 - Prob. 23.1.2RQCh. 23 - Prob. 23.1.3RQCh. 23 - Prob. 23.1.4PACh. 23 - Prob. 23.1.5PACh. 23 - Prob. 23.1.6PA
Ch. 23 - Prob. 23.1.7PACh. 23 - Prob. 23.1.8PACh. 23 - Prob. 23.1.9PACh. 23 - Prob. 23.2.1RQCh. 23 - Prob. 23.2.2RQCh. 23 - Prob. 23.2.3RQCh. 23 - Prob. 23.2.4RQCh. 23 - Prob. 23.2.5RQCh. 23 - Prob. 23.2.6PACh. 23 - Prob. 23.2.7PACh. 23 - Prob. 23.2.8PACh. 23 - Prob. 23.2.9PACh. 23 - Prob. 23.2.10PACh. 23 - Prob. 23.2.11PACh. 23 - Prob. 23.2.12PACh. 23 - Prob. 23.2.13PACh. 23 - Prob. 23.2.14PACh. 23 - Prob. 23.2.15PACh. 23 - Prob. 23.3.1RQCh. 23 - Prob. 23.3.2RQCh. 23 - Prob. 23.3.3RQCh. 23 - Prob. 23.3.4RQCh. 23 - Prob. 23.3.5RQCh. 23 - Prob. 23.3.6PACh. 23 - Prob. 23.3.7PACh. 23 - Prob. 23.3.8PACh. 23 - Prob. 23.3.9PACh. 23 - Prob. 23.3.10PACh. 23 - Prob. 23.3.12PACh. 23 - Prob. 23.4.1RQCh. 23 - Prob. 23.4.2RQCh. 23 - Prob. 23.4.3RQCh. 23 - Prob. 23.4.4PACh. 23 - Prob. 23.4.5PACh. 23 - Prob. 23.4.6PACh. 23 - Prob. 23.4.7PACh. 23 - Prob. 23.4.8PACh. 23 - Prob. 23.4.9PACh. 23 - Prob. 23.4.10PACh. 23 - Prob. 23.4.11PACh. 23 - Prob. 23.4.12PACh. 23 - Prob. 23.4.13PACh. 23 - Prob. 23.4.14PACh. 23 - Prob. 23.5.1RQCh. 23 - Prob. 23.5.2RQCh. 23 - Prob. 23.5.3RQCh. 23 - Prob. 23.5.4PACh. 23 - Prob. 23.5.5PACh. 23 - Prob. 23.5.6PACh. 23 - Prob. 23.1RDECh. 23 - Prob. 23.2CTECh. 23 - Prob. 23.3CTE
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