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2. A tabular approach to Keynesian equilibrium The following table shows some information on a hypothetical economy. The table lists real GDP, consumption (C), investment

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2. A tabular approach to Keynesian equilibrium The following table shows some information on a hypothetical economy. The table lists real GDP, consumption (C), investment (1), government spending (G), net exports (X - M), and aggregate expenditures (AE). In this problem, assume that investment, government spending, and net exports are independent of the economy's real GDP level. X - Unplanned Inventory Direction of Real GDP and Real GDP C G M AE Investment Employment $200 $175 $100 $90 -$105 -$60 $300 S $100 $90 -$105 $340 -$40 $400 $335 $100 $90 -$ 105 S -$20 $500 $100 $90 -$105 $500 $0 $495 $100 $90 -$ 105 $580 $20 Using the numbers provided in the table, enter the correct numbers in the empty cells. Then, using the dropdown selection menus in the right-most column, indicate whether output will tend to increase, decrease, or remain in equilibrium at each level of real GDP in the table. (Note: The table uses negative numbers to indicate an unplanned inventory investment depletion and positive numbers to indicate an unplanned inventory investment accumulation.) True or False: The most fundamental assumption behind the aggregate expenditures model is that prices in the economy are fixed. O True O False When aggregate expenditures are less than real GDP, there is an unplanned inventory investment . This will prompt firms to employment and production

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