The table lists real GDP (Y) and the components of aggregate planned expenditure in billions of dollars.

Jul 12, 2021 | Hire us to write

The table lists real GDP (Y) and the components of aggregate planned expenditure in billions of dollars. Use the table to ans
  1. Calculate autonomous expenditure. Calculate the marginal propensity to consume. How much is equilibrium expenditure?
  2. What is aggregate planned expenditure when real GDP is $300 billion?
  3. If real GDP is $300 billion, explain the process that moves the economy toward equilibrium expenditure.
  4. If real GDP is $ 500 billion, explain the process that moves the economy toward equilibrium expenditure.

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