1st Fill in the blank options: The economy is in equilibrium, or aggregate expenditure exceeds current output by $225 billion, or aggregate expenditure exceeds current output by $150 billion, or current output exceeds aggregated expenditure by $150 billion, or current output exceeds aggregated expenditure by $225 billion. 2nd Fill in the blank options: keep production the same, or increase production, or decreased production3rd Fill in the blank options: 0.25 or 0.80 or 0.50 or 0.75 4th Fill in the blank options: 2 or 1.3 or 1 or 4 1. Aggregate expenditure and incomeThe following table shows consumption (C), investment (I), government purchases (G), and net exports (X-IM) in a hypothetical economy forvarious levels of real GDP (Y). Assume that the price level remains unchanged at all levels of income. All figures are in billions of dollars.Compute total expenditure for each income level, and fill in the last column in the following table.YCIG X-IM Total Expenditure500 525 250150-200600 550 250 150-200575 250 150600250 150900 625 250 150700800RE (Billions of dollars)1000The following graph shows income (Y) on the horizontal axis and total expenditure (TE) on the vertical axis. The grey line represents a 45-degree(Y = TE) line.900Use the blue points (circle symbol) to plot the total expenditure line for this economy at an income of $500 billion, $600 billion, $700 billion, $800billion, and $900 billion.Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically.(?)800-200700-200+-200CTE lineEquilibrium GDP Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically.REAL EXPENDITURE (Billions of dollars)1000900800700600500400400- 500BOO700600REAL GDP (Billions of dollars)9001000TE lineEquilibrium GDPUse the black point (plus symbol) to indicate the equilibrium in this economy, that is, where total expenditure and income are equal.Note: Dashed drop lines will automatically extend to both axes.The marginal propensity to consume (MPC) for this economy isSuppose real GDP is currently $500 billion. Assuming the price level remains constant, this would mean that♥, which would send a signal to firms toand the oversimplified multiplier for this economy is equal to

From the table, the value of I, G and X-IM is unchanged I=250 G=150 X-IM=*200 Only the consumption…

Answered: Note: Plot your points in the order in…

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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1st Fill in the blank options: The economy is in equilibrium, or aggregate expenditure exceeds current output by $225 billion, or aggregate expenditure exceeds current output by $150 billion, or current output exceeds aggregated expenditure by $150 billion, or current output exceeds aggregated expenditure by $225 billion.

2nd Fill in the blank options: keep production the same, or increase production, or decreased production

3rd Fill in the blank options: 0.25 or 0.80 or 0.50 or 0.75

4th Fill in the blank options: 2 or 1.3 or 1 or 4

1. Aggregate expenditure and income
The following table shows consumption (C), investment (I), government purchases (G), and net exports (X-IM) in a hypothetical economy for
various levels of real GDP (Y). Assume that the price level remains unchanged at all levels of income. All figures are in billions of dollars.
Compute total expenditure for each income level, and fill in the last column in the following table.
Y
C
I
G X-IM Total Expenditure
500 525 250
150
-200
600 550 250 150
-200
575 250 150
600
250 150
900 625 250 150
700
800
RE (Billions of dollars)
1000
The following graph shows income (Y) on the horizontal axis and total expenditure (TE) on the vertical axis. The grey line represents a 45-degree
(Y = TE) line.
900
Use the blue points (circle symbol) to plot the total expenditure line for this economy at an income of $500 billion, $600 billion, $700 billion, $800
billion, and $900 billion.
Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically.
(?)
800
-200
700
-200
+
-200
C
TE line
Equilibrium GDP

Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically.
REAL EXPENDITURE (Billions of dollars)
1000
900
800
700
600
500
400
400
- 500
BOO
700
600
REAL GDP (Billions of dollars)
900
1000
TE line
Equilibrium GDP
Use the black point (plus symbol) to indicate the equilibrium in this economy, that is, where total expenditure and income are equal.
Note: Dashed drop lines will automatically extend to both axes.
The marginal propensity to consume (MPC) for this economy is
Suppose real GDP is currently $500 billion. Assuming the price level remains constant, this would mean that
♥, which would send a signal to firms to
and the oversimplified multiplier for this economy is equal to

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