A manufacturing company is producing $5,000,000 worth of goods this year and expects to sell $5,400,000. The firm sells $4,800,000 worth of goods. It is also planning on purchasing $2,000,000 in new equipment during the year. At the beginning of the year, the company has $500,000 in inventory in its warehouse.

1. Calculate desired investment
2. Calculate realized investment
3. Calculate desired end of the year inventories
4. Calculate realized end of the year inventories
5. Calculate unplanned inventory investment
6. Calculate Y
7. Calculate E
8. Based on your answers above, should the government follow expansionary or contractionary policies and what kinds? Why?

Please show the steps