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need some help with the following, thanks! 2. A tabular approach to Keynesian equilibrium The following table shows some information on a hypothetical economy. We
need some help with the following, thanks!
2. A tabular approach to Keynesian equilibrium The following table shows some information on a hypothetical economy. We table lists real GDP, consumption ((2), investment (1), government spending (G), net exports (X M), and aggregate expenditures [AE). In this problem, assume that investment, government spending, and net exports are independent of the economy's real GDP level. X Unplanned Inventory Direcb'on of Real GDP and Real GDP C I G M AE Investment Employment $200 $300 $90 $100 $215 $?5 v $300 $90 $100 $215 $350 $50 v $400 $450 $90 $100 $215 $ 25 v $500 $90 $100 $215 $500 $0 Equilibrium 7 $600 $90 $100 $215 $575 $25 Increase v Using the numbers provided in the table, enter the correct numbers in the empty cells. Then, using the dropdown selecljon menus in the rightmost column, indicate whether output will tend to increase, decrease, or remain in equilibrium at each level of real GDP in the table. (Note: The table uses negative numbers to indicate an unplanned inventory investment depletion and positive numbers to indicate an unplanned inventory investment accumulation .) Tme or False: The most fundamental assumption behind the aggregate expenditures model is that prices in the economy are xed. 0 True 0 False when aggregate expenditures are greater than real GDP, there is an unplanned inventory investment V . This will prompt rms to 7 employment and productionStep by Step Solution
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