Question 2Refer to the data in Table 1, the consumption function is C = 200+ 0.8 (Y-T). Fill in thecolumns in the table columns and identify the equilibrium output. How do firms react tounplanned inventory?Table 1Income NetDisposableIncomeYTaxesConsumption SavingCGovernmentPurchasesGPlannedAggregateExpenditureC+I+GUnplannedInventoryChangeY-(C+I+G)S=Yd-CTYd=Y-T05020085050200170050200255050200340050200425050200¨¨¨PlannedInvestmentSpending,I150150150150150150

"Macro-economic equilibrium output is attained at a point where income equates the planned aggregate…

Question 2 Refer to the data in Table 1, the consumption function is C = 200+ 0.8 (Y-T). Fill in the columns in the table columns and identify the equilibrium output. How do firms react to unplanned inventory? Table 1 Income Net Disposable Income Unplanned Inventory Consumption Saving Y Taxes Government Purchases G Planned Aggregate Expenditure C+I+G S=Yd-C Change T Yd=Y-T Y-(C+I+G) 0 50 200 850 50 200 1700 50 200 2550 50 200 200 3400 50 4250 50 Planned Investment Spending, I 150 150 150 150 150 150 200

Question 2 Refer to the data in Table 1, the consumption function is C = 200+ 0.8 (Y-T). Fill in the columns in the table columns and identify the equilibrium output. How do firms react to unplanned inventory? Table 1 Income Net Disposable Income Unplanned Inventory Consumption Saving Y Taxes Government Purchases G Planned Aggregate Expenditure C+I+G S=Yd-C Change T Yd=Y-T Y-(C+I+G) 0 50 200 850 50 200 1700 50 200 2550 50 200 200 3400 50 4250 50 Planned Investment Spending, I 150 150 150 150 150 150 200

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter10: Keynesian Macroeconomics And Economic Instability: A Critique Of The Self Regulating Economy

Section: Chapter Questions

Problem 2WNG

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