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Can you please let me know if its good, if not correct me and give the good answer please!! uuuauuu L [I0 puma] Research by

Can you please let me know if its good, if not correct me and give the good answer please!!

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uuuauuu L [I0 puma] Research by a team of expert economists has uncovered the consumption and import functions and produced a forecast of planned investr and exports for the economy of Sunny City as reported below: 0 1 00 1 00 75 25 1 00 1 80 1 00 75 55 200 260 1 00 75 85 300 340 1 00 75 1 1 5 400 420 1 00 75 1 45 500 500 1 00 75 1 75 600 580 1 00 75 205 700 660 1 00 75 235 800 740 1 00 75 265 900 820 1 00 75 295 1 ,000 900 100 75 325 1 ,100 980 100 75 355 1 ,200 1 ,060 100 75 385 a) What equilibrium real GDP would Sunny City produce? Equilibrium real GDP: 500 b) What are the marginal propensities to consume and import in Sunny City. Note: Keep as much precision as possible during your calculations. Your final answer should be accurate to at least two decimal places. Marginal propensity to consume: 0.8 Marginal propensity to import: 0.3 c) What is the size of the multiplier? Note: Keep as much precision as possible during your calculations. Your final answer should be accurate to at least two decimal places. Size of the multiplier: 2 d) If actual GDP were 700, what difference between planned and actual investment would result? Why? Size of the multiplier: 2 d) If actual GDP were 700, what difference between planned and actual investment would result? Why? The aggregate expenditure would be 750 . Due to the difference between the aggregate expenditure and Y, inventories are increased to ll the gap. Planned investment, including planned inventory investment is 100 but the unplanned changes to inventories results in an actual investment of 350 e) If planned investment increases by 20 to 120, what is the new equilibrium income? New equilibrium income : 600

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