1 answer

GDP с s lg х M AE 360 352 8 28 50 100 70 380 368...

Question:

GDP с s lg х M AE 360 352 8 28 50 100 70 380 368 12 28 50 100 70 400 384 16 28 50 100 70 420 400 20 28 50 100 70 440 416 24 2When GDP = 360, AE=? Ą When GDP = 380, AE=? Ą When GDP=400, AE=? Ą When GDP=420, AE=? Ą When GDP=440, AE=? A When GDP=460, AEIf full employment GDP = 400 (Qf=400), what type of gap do we have and what is the size of the gap? answer in the form of ty

GDP с s lg х M AE 360 352 8 28 50 100 70 380 368 12 28 50 100 70 400 384 16 28 50 100 70 420 400 20 28 50 100 70 440 416 24 28 50 100 70 460 432 28 28 50 100 70 480 448 32 28 50 100 70
When GDP = 360, AE=? Ą When GDP = 380, AE=? Ą When GDP=400, AE=? Ą When GDP=420, AE=? Ą When GDP=440, AE=? A When GDP=460, AE=? Ą When GDP=480, AE=? A What is the value for MPC? use 2 decimal places. Ą What is the value for MPS? use 2 decimal places. A what is the value for the multiplier? A/ What is the specific equation for our consumption schedule in this example? Ą What is the specific equation for our AE model above? Ą What is the value for equilibrium in our model?
If full employment GDP = 400 (Qf=400), what type of gap do we have and what is the size of the gap? answer in the form of "type of gap"=## A If full employment GDP = 600 (Qf=600) what type of a gap do we have and what is the size of the gap? answer in "type of gap"=## A/ If Government spending decreases to 50 what is the new equilibrium? A

Answers

AE= C+Ig+G+ NX

where NX= X-M

Now,

at GDP=360, AE= 352+28+70+ (50-100)

= 450-50

= 400

Hence, at GDP= 360, AE= 400

at GDP=380, AE= 368+28+70+ (50-100)

= 466-50

= 416

Hence, at GDP= 380, AE= 416

at GDP=400, AE= 384+28+70+ (50-100)

= 482-50

= 432

Hence, at GDP= 400, AE= 432

at GDP=420, AE= 400+28+70+ (50-100)

= 498-50

= 448

Hence, at GDP= 420, AE= 448

​​at GDP=440, AE= 416+28+70+ (50-100)

= 514-50

= 464

Hence, at GDP= 440, AE= 464

​​at GDP=460, AE= 432+28+70+ (50-100)

= 530-50

= 480

Hence, at GDP= 460, AE= 480

​​at GDP=480, AE= 448+28+70+ (50-100)

= 546-50

= 496

Hence, at GDP= 480, AE= 496

.

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