he graph below models an economy in equilibrium with a real GDP of $180 billion. Suppose that nsumer's expectations about future incomes change, causing unplanned inventory investment to crease by $30 billion. Shift the Planned Aggregate Expenditure (AE) line to show the effect of this ange. 300 270 5 240 210 180 150 120 Planned AE 45° line This change will cause the equilibrium level of real GDP to: remain unchanged. decrease. increase. How much will GDP change once the new equilibrium is reached? (If GDP decreases, be sure to include a negative sign.) Number billion dollars
he graph below models an economy in equilibrium with a real GDP of $180 billion. Suppose that nsumer's expectations about future incomes change, causing unplanned inventory investment to crease by $30 billion. Shift the Planned Aggregate Expenditure (AE) line to show the effect of this ange. 300 270 5 240 210 180 150 120 Planned AE 45° line This change will cause the equilibrium level of real GDP to: remain unchanged. decrease. increase. How much will GDP change once the new equilibrium is reached? (If GDP decreases, be sure to include a negative sign.) Number billion dollars
Chapter9: The Keynesian Model In Action
Section: Chapter Questions
Problem 3SQP
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