Planned AE (PAE, trillion $) 06:-1 O 12:1 O 12-1 45° 6:1 AE = Y Refer to a graph above. Suppose the the economy has the planned aggregate expenditure of PAE₁ and planned investment is $2 trillion, government purchases is $2 trillion and net export is -$2 trillion. The macroeconomic equilibrium GDP is $ trillion. trillion and autonomous consumption is $ PAE₂= 7+0.5Y PAE = 5 +0.5Y PAE₁ = 3 +0.5Y Actual AE (GDP, Y, trillion $)

Planned AE (PAE, trillion $) 06:-1 O 12:1 O 12-1 45° 6:1 AE = Y Refer to a graph above. Suppose the the economy has the planned aggregate expenditure of PAE₁ and planned investment is $2 trillion, government purchases is $2 trillion and net export is -$2 trillion. The macroeconomic equilibrium GDP is $ trillion. trillion and autonomous consumption is $ PAE₂= 7+0.5Y PAE = 5 +0.5Y PAE₁ = 3 +0.5Y Actual AE (GDP, Y, trillion $)

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter9: Demand-side Equilibrium: Unemployment Or Inflation?

Section9.A: The Simple Algebra Of Income Determination And The Multiplier

Problem 4TY

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