At equilibrium expenditure, unplanned changes in inventory O must be negative. might be either positive or negative. O must be zero. O must be positive.
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- If Y= 450, C=400, S=50, I=20 and aggregate expenditure is 420 then change in income expenditure is. Decregse O b. None of these Increase od. SameGuideLine Agg. Demand Consumption Consumption 196 56 National Income 190 1. The Marginal Propensity to Consume (MPC) equals: A. 0.60 В. 0.70 C. 0.75 D. 0.80The figure below depicts the economy of Altrua, which is presently in equilibrium. Enter your responses below rounded to one decimal place. AS AD LAS 340 360 380 400 420 440 460 480 500 520 Price level a. The size of its recessionary gap is $ b. The size of this gap as a percentage of its actual GDP is
- Calculate intermediate consumptionAggregate planned expenditure (trillions of 2009 dollars) 7 1 45° line AE2 AEO 2a) b) plan in th B A AE1 3a) 15 3 4 14 0 14 15 16 17 18 19 Real GDP (trillions of 2009 dollars) In the above figure the economy is initially at point A on the aggregate expenditure curve AEQ. Suppose investment decreases. As a result the AE curve shifts upward to a curve such as AE2. the AE curve shifts downward to a curve such as AE1. O there is a movement along AEO to a point such as B. O there is a movement along AEO to a point such as C. 5 6 7 81 90 100 109 b) T c) T d) It e) $140. Calculate equilibrium income when C= 140+ 0.80Y I= 160 G=200 X 150 %3D M=100. %3D
- Answer the question on the basis of the information given in the following diagram: Guideline Agg. Demand Consumption Consumption 150 60 500 National Income 1. The Marginal Propensity to Consume (MPC) equals: A. 0.60 B. 0.70 C. 0.75 D. 0.80 21°C C Type here to searchOf the influences on expenditure plans, which ones remain constant along the aggregate demand curve? A. Only the price level B. All influences except the price level C. All influences including the price level D. The sum of the components of aggregate expenditure ThnaksHelp Seve &Eeit Assume an economy is currently in equilibrium with Real GDP at $716 bllion. If potential Real GDP 6.AS) is $627 billion, which of the following is true? Multiple Choice There is an inflationary gap of $89 billion. There is an inflationary gop of-89 percent There is a recessionary gap of 89 percent. There is a recessionary gap of $89 bilion. Activa Go to S
- in an imaginary economy, there is no foreign trade and no government activity. APC = MPC = 0.08. In equilibrium, consumption expenditure is Rs,20, 000 Million. (a) What is ihe level of invesiment expenditure? (b) What is the value of the multiplier (c) Suppose investment spending remains unchanged but both APC and MPC fall to 0.06, what is the new equilibrium level of national income?An equation for Aggregate Expenditure is: AE = $3600 + 0.8Y, In equilibrium, Income 'Y' = Aggregate Expenditure 'AE'. Solve for Y18. What will be the level of consumption spending at an income level of 36? a) 30 b) 24 c) 28 d) 16 e) 8
