If investment crashes to $0.55 million but nothing else changes, what is equilibrium expenditure and what is

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If investment crashes to $0.55 million but nothing else changes, what is equilibrium expenditure and what is the multiplier?

The table shows real GDP, Y, the components of planned expenditure, and aggregate planned expenditure (in millions of dollars) in an economy in which taxes are constant.

Planned expenditure AE 2.0 1.75 1.0 1.25 6.0 1.75 1.0 1.25 0.4 6.8 4.4 1.0 1.25 0.8 7.6 1.25 5.6 1.75 1.2 8.4 1.0 6.8 1.

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Foundations of Macroeconomics

ISBN: 978-0134492001

8th edition

Authors: Robin Bade, Michael Parkin

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Question Posted: May 21, 2018 07:17 AM

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If investment crashes to $0.55 million but nothing else changes, what is equilibrium expenditure and what is

Question:

Planned expenditure AE 2.0 1.75 1.0 1.25 6.0 1.75 1.0 1.25 0.4 6.8 4.4 1.0 1.25 0.8 7.6 1.25 5.6 1.75 1.2 8.4 1.0 6.8 1.75 1.6 9.2 1.75 1.25 10 8.0 1.0 10.0 12 9.2 1.75 1.0 1.25 2.4

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Equilibrium expenditure becomes 8 million because whe...View the full answer

Foundations of Macroeconomics

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