13. аThe accompanying table shows gross domesticproduct (GDP), disposable income (YD), con-sumer spending (C), and planned investmentspending (Iplanned) in an economy. Assume there isno government or foreign sector in this economy.Complete the table by calculating planned aggre-gate spending (AEplanned) and unplanned inven-tory investment (IUnplanned).GDPYDCIPlanned AEPlanned Unplanned(billions of dollars)$0$0 $100$3004004004003008008007003001,200 1,200 1,0003003001,600 1,600 1,300300?2,000 2,000 1,6003002,400 2,400 1,9003002,800 2,800 2,2003003,200 3,200 2,500b. What is the aggregate consumption function?c. What is Y*, income-expenditure equilibrium GDP?

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13. а The accompanying table shows gross domestic product (GDP), disposable income (YD), con- sumer spending (C), and planned investment spending (Iplanned) in an economy. Assume there is no government or foreign sector in this economy. Complete the table by calculating planned aggre- gate spending (AEPlanned) and unplanned inven- tory investment (IUmplanned). GDP YD IPlanned AEPlanned TUnplanned (billions of dollars) $0 $0 $100 $300 400 400 400 300 800 800 700 300 1,200 1,200 1,000 300 300 1,600 1,600 1,300 300 2,000 2,000 1,600 300 2,400 2,400 1,900 300 2,800 2,800 2,200 300 3,200 3,200 2,500 b. What is the aggregate consumption function? ilihrium GDE

13. а The accompanying table shows gross domestic product (GDP), disposable income (YD), con- sumer spending (C), and planned investment spending (Iplanned) in an economy. Assume there is no government or foreign sector in this economy. Complete the table by calculating planned aggre- gate spending (AEPlanned) and unplanned inven- tory investment (IUmplanned). GDP YD IPlanned AEPlanned TUnplanned (billions of dollars) $0 $0 $100 $300 400 400 400 300 800 800 700 300 1,200 1,200 1,000 300 300 1,600 1,600 1,300 300 2,000 2,000 1,600 300 2,400 2,400 1,900 300 2,800 2,800 2,200 300 3,200 3,200 2,500 b. What is the aggregate consumption function? ilihrium GDE

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter15: Gross Domestic Product

Section: Chapter Questions

Problem 7SQP

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