- economy described by the following equations: C 1,600 + 0.9 (Y - T) P800 G 1,600 X200 T 1,600 29,000 the table shown below to find short-run equilibrium output. Consider possible values for short-run equilibriur en in the table below. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers Planned aggregate expenditure (PAE) Y- PAE? (Click to select v (Click to select (Click to select) (Click to select (Click to select v Y PAE level of equilibrium output: e output gap for this economy? :If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. T

Microeconomic Theory
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Chapter10: Cost Functions
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Problem 13-04 (algo)
Consider the economy described by the following equations:
C - 1,600 + 0.9 (Y - T)
IP. 800
G. 1,600
NX 200
T 1,600
Y- 29, 000
a. Complete the table shown below to find short-run equilibrium output. Consider possible values for short-run equilibrium output as
they are given in the table below.
Instructions: If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers
Planned aggregate
expenditure (PAE)
Out putY
Y- PAE
Y. PAE?
(Click to select v
(Click to select) v
(Click to select
(Click to select)
(Click to select
27, 200
27,400
27,600
27,800
28,eee
b. Short-run level of equilibrium output:
c. What is the output gap for this economy?
Instructions: If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. The actual
unemployment rate should be rounded to two decimal places.
Output gap:
where Y= 29.000
If the natural rate of unemployment is 5 percent, what is the actual unemployment rate for this economy (use Okun's law given Y=
29,000).
Actual unemployment rate:
Transcribed Image Text:Problem 13-04 (algo) Consider the economy described by the following equations: C - 1,600 + 0.9 (Y - T) IP. 800 G. 1,600 NX 200 T 1,600 Y- 29, 000 a. Complete the table shown below to find short-run equilibrium output. Consider possible values for short-run equilibrium output as they are given in the table below. Instructions: If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers Planned aggregate expenditure (PAE) Out putY Y- PAE Y. PAE? (Click to select v (Click to select) v (Click to select (Click to select) (Click to select 27, 200 27,400 27,600 27,800 28,eee b. Short-run level of equilibrium output: c. What is the output gap for this economy? Instructions: If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. The actual unemployment rate should be rounded to two decimal places. Output gap: where Y= 29.000 If the natural rate of unemployment is 5 percent, what is the actual unemployment rate for this economy (use Okun's law given Y= 29,000). Actual unemployment rate:
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