The rate of output and planned expenditures for the economy of Timbuktu are shown in the following table: Total Output Planned Aggregate Expenditures (Two-Sector Economy) (Real GDP in billion dollars) (in billions) 5,000 5,250 5,500 5,500 6,000 5,750 6,500 6,000 7,000 6,250 a) What is the equilibrium rate of income/output of Timbuktu economy? b) If the economy's full employment rate of output is $6.0 trillion, what will happen to the unemployment rate assuming that it will persist into the future? c) What would happen to the equilibrium level of output/income if there will be an autonomous increase in investment of $250 billion?
Total Output Planned Aggregate Expenditures (Two-Sector Economy)
(Real GDP in billion dollars) (in billions)
5,000 5,250
5,500 5,500
6,000 5,750
6,500 6,000
7,000 6,250
a) What is the equilibrium rate of income/output of Timbuktu economy?
b) If the economy's full employment rate of output is $6.0 trillion, what will happen to the
c) What would happen to the equilibrium level of output/income if there will be an autonomous increase in investment of $250 billion?
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