Question
Possible Levels of Employment, In Millions Real Domestic Output, Billions Consumption, Billions Savings, Billion 35 230 239 -9 40 250 255 -5 45 270 271
Possible Levels of Employment, In Millions | Real Domestic Output, Billions | Consumption, Billions | Savings, Billion |
---|---|---|---|
35 | 230 | 239 | -9 |
40 | 250 | 255 | -5 |
45 | 270 | 271 | -1 |
50 | 290 | 287 | 3 |
55 | 310 | 303 | 7 |
60 | 330 | 319 | 11 |
65 | 350 | 335 | 15 |
70 | 370 | 351 | 19 |
75 | 390 | 367 | 23 |
Saving, Billions
a. Using the above consumption and saving data and assuminginvestment is $15 billion, what are saving and planned investmentat the $370 billion level of domestic output?
Saving = $ billion.
Planned investment = $ billion.
b. What are saving and actual investment at that level?
Saving = $ billion.
Actual investment = $ billion.
c. What are saving and planned investment at the $330 billionlevel of domestic output?
Saving = $ billion.
Planned investment = $ billion.
d. What are the levels of saving and actual investment?
Saving = $ billion.
Actual investment = $ billion.
e. In which direction and by what amount will unplannedinvestment change as the economy moves from the $370 billion levelof GDP to the equilibrium level of real GDP?
Unplanned inventories will by $ billion.
f. From the $330 billion level of real GDP to the equilibriumlevel of GDP?
Unplanned inventories will by $ billion.
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