ECONOMICS:PRIN.+POLICY-MINDTAP (1 TERM)
14th Edition
ISBN: 9781337912396
Author: Baumol
Publisher: CENGAGE L
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Chapter 25, Problem 2TY
To determine
Determine the equilibrium level of
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Use the following information to complete the calculations.
C = 15235 + 0.67Y
I = 8777
G = 3425
NX = -551
What is the value of autonomous expenditure (AE)? Round your answer to the nearest dollar.
AE: $
Calculate the equilibrium level of GDP. Round your answer to the nearest dollar.
GDP: $
Calculate the four components of aggregate expenditure and GDP for the following economy using data from the table below.Instructions: Enter your responses as whole numbers. If you are entering any negative numbers, be sure to include a negative (-) sign in front of those numbers.
GDP
Consumption expenditures
$550
Exports
$100
Government purchases of goods and services
$200
Construction of new homes and apartments
$200
Sales of existing homes and apartments
$200
Imports
$50
Beginning-of-year inventory stocks
$100
End-of-year inventory stocks
$50
Business fixed investment
$100
Government payments to retirees
$100
Household purchases of durable goods
$150
Consumption expenditures: $
Investment expenditures: $
Government Purchases: $ Net Exports: $
GDP: $
This question has four parts. (its not a writing assignment, just asking for a numerical value or simple answer)
1.1. What is the US GDP for the first quarter and second quarter of 2020? What is the personal consumption expenditures for the first quarter and second quarter of 2020?
Go to the website for the Bureau of Economic Analyses (BEA): https://www.bea.gov/
Section 1: Domestic Product and Income; Table 1.1.5
1.2. Use the information in Table 1 to analyze aggregate expenditures (AE) model below (Figure 1. Equilibrium in a Private Closed Economy). (table 1 and figure 1 are in the attachments)
1.3. Identify the mistake and explain why the graph of the aggregate expenditures line does not correctly illustrate the economy's equilibrium.
1.4. Create a graph for the aggregate expenditures (AE) model using the data from Table 1: A Private Closed Economy.
Tips: Remember, the 45degree line (also known as the Keynesian Cross) is a tool that shows how differences in aggregate…
Chapter 25 Solutions
ECONOMICS:PRIN.+POLICY-MINDTAP (1 TERM)
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