d. What is the value of the multiplier?e. If planned investment spending falls to $200 billion,what will be the new Y*?f. If autonomous consumer spending rises to $200 bil-lion, what will be the new Y*? WORK IT OUTLaunchPadMacmillan EducationFor interactive, step-by-step help in solving the following problem,visitaunchPad by using the URL on the back cover of this book.13,The 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 TUnplanned(billions of dollars)$0$0 $100$300400400400300800800700300* ?1,200 1,200 1,000300?1,6001,600 1,3003002,000 2,000 1,6003002,400 2,400 1,9003002,800 2,800 2,2003003,200 3,200 2,500300

Answered: Image /qna-images/answer/f7777b65-ba34-4622-93df-d19674a10659.jpg

d. What is the value of the multiplier? e. If planned investment spending falls to $200 billion, what will be the new Y*? - If autonomous consumer spending rises to $200 bil- lion, what will be the new Y*?

d. What is the value of the multiplier? e. If planned investment spending falls to $200 billion, what will be the new Y? - If autonomous consumer spending rises to $200 bil- lion, what will be the new Y?

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter9: Aggregate Demand

Section: Chapter Questions

Problem 5.12P

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Question

d. What is the value of the multiplier?
e. If planned investment spending falls to $200 billion,
what will be the new Y*?
f. If autonomous consumer spending rises to $200 bil-
lion, what will be the new Y*?

WORK IT OUT
LaunchPad
Macmillan Education
For interactive, step-by-step help in solving the following problem,
visitaunchPad by using the URL on the back cover of this book.
13,
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 (IUnplanned).
GDP
YD
C
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
?
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
300

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