Refer the table below and answer the questions that follow. Aggregate Output ($ million) Y Aggregate Consumption ($ million) C Aggregate Saving ($ million) S Planned Investment ($ million) I Aggregate Expenditure AE = C+I 2,000 1,500 700 2,400 1,800 700 2,800 2,100 700 3,200 2,400 700 3,600 2,700 700 Fill in the table and find the equilibrium income. Find the MPC, MPS and the multiplier. If the planned investment increases by $100 million find the new equilibrium level of income.

Refer the table below and answer the questions that follow. Aggregate Output ($ million) Y Aggregate Consumption ($ million) C Aggregate Saving ($ million) S Planned Investment ($ million) I Aggregate Expenditure AE = C+I 2,000 1,500 700 2,400 1,800 700 2,800 2,100 700 3,200 2,400 700 3,600 2,700 700 Fill in the table and find the equilibrium income. Find the MPC, MPS and the multiplier. If the planned investment increases by $100 million find the new equilibrium level of income.

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter9: Demand-side Equilibrium: Unemployment Or Inflation?

Section: Chapter Questions

Problem 2DQ

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Aggregate Output ($ million) Y	Aggregate Consumption ($ million) C	Aggregate Saving ($ million) S	Planned Investment ($ million) I	Aggregate Expenditure AE = C+I
2,000	1,500		700
2,400	1,800		700
2,800	2,100		700
3,200	2,400		700
3,600	2,700		700