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Consider the macroeconomic model shown below: C = 750 + 0.50Y Consumption function I = 1,250 Planned investment function G = 2,000 Government spending function
Consider the macroeconomic model shown below:
C = 750 + 0.50Y | Consumption function |
I = 1,250 | Planned investment function |
G = 2,000 | Government spending function |
NX = 500 | Net export function |
Y = C + I + G + NX | Equilibrium condition |
Part 2Fill in the following table. (Enter your responses as integers.)
GDP | Aggregate Expenditures (AE) | Unplanned Change in Inventories |
$4,500 | ______$ | ________ |
$13,500 | ________$ | ________ |
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