Question
A) Equilibrium is 500B) Marginal propensity to consume is 0.7 Marginal propensity to import is 0.2C) Multiplier is 2D) if actual GDP were 900, what
A) Equilibrium is 500B) Marginal propensity to consume is 0.7 Marginal propensity to import is 0.2C) Multiplier is 2D) if actual GDP were 900, what difference between planned and actual inversement would result? Why?The aggregate expenditure would be (700?) Due to the difference between the aggregate expenditure and Y, inventories are (increased?) to fill the gap.Planned inversement , including inventory inversement is 100 but the unplanned changes to inventories results in an actual investment of ___ ?E) if planned inversement increases by 30 to 130, what is the new equilibrium income ?
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