Answered: d. What are the levels of saving and… | bartleby

Microeconomic Theory

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter17: Capital And Time

Section: Chapter Questions

Problem 17.2P

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Question

Only need answers d-f

Using the consumption and saving data above and assuming planned investment is $20 billion, answer the following questions:
a. What are saving and planned investment at the $380 billion level of domestic output?
Saving = $
| billion
Investment
| billion
b. What are saving and actual investment at that level?
Saving = $
| billion
Investment = $
billion
%3D
c. What are saving and planned investment at the $340 billion level of domestic output?
Saving = $
|billion
Investment =
| billion
d. What are the levels of saving and actual investment?
Saving = $
|billion
Investment
|billion
e. In which direction and by what amount will unplanned investment change as the economy moves from the $380 billion level of GDP
to the equilibrium level of real GDP?
Unplanned inventories will (Click to select) by $
| billion.
f. From the $340 billion level of real GDP to the equilibrium level of GDP?
Unplanned inventories will (Click to select) by $
|billion.

The table below shows levels of employment, output, consumption, and saving for a private closed economy.
Possible Levels
of Employment,
Millions
Real Domestic
Output,
Billions
$ 240
Consumption,
Billions
$ 244
Saving,
Billions
40
-$4
45
260
260
50
280
276
4
55
300
292
60
320
308
12
65
340
324
16
70
360
340
20
75
380
356
24
80
400
372
28
Instructions: Enter your answers as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) in
front of those numbers.

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