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2. From what was learned in class, explain what the values of the slope and vertical intercept of the aggregate consumption function mean from an
2. From what was learned in class, explain what the values of the slope and vertical intercept of the aggregate consumption function mean from an economic perspective. Income-expenditure equilibrium Using the data in the following table to complete the following questions. GDP YD C AE Piesand Planned Unplanned (billions of dollars) SO So $200 $100 500 100 800 100 1,100 100 1,400 100 1,700 100 2,500 2,500 2,000 100 3.000 31000 2.300 100 1. Complete the columns for AEnames and fungames in the table. 2. What is the value of the MPC? 3. What is the aggregate consumption function? 4. 4. What is the equation for the planned aggregate expenditure function? 5. What is the value of income-expenditure equilibrium GDP, (Y*)? 6. Explain in economic terms what happens when not in the income-expenditure equilibrium? Both when GDP > AEplanned and GDP AEplanned and GDP
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