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Real GDP 45 line 1 on 8 8 m 8 ____-nL- Total Expenditures (billions of dollars) 0 100200300400500800?00800 Real GDP {billions of dollars) Refer to

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Real GDP 45\" line 1 on 8 8 m 8 ____-nL-\" Total Expenditures (billions of dollars) 0 100200300400500800?00800 Real GDP {billions of dollars) Refer to Exhibit 10-5 above and answer all questions below: a) Choose a level of Real GDP that is not at equilibrium '5 h) IfInvestment {1) increases it follows that TE (or AD) will shi upward/downwardor be aecred at all. a) When Real GDP is $200 billion, inventories will FalizRise/Remain Unchanggi. d) When Real GDP is $600 billion, rms will most likely (chose either I, II. or III) 1. Increase production to increase inventories to their optimum levels. 11. Will neither increase nor decrease Motion since the economyr is in equilibrium 111. Will cut back production to reduoe inventories to their optimum levels e) Suppose full employment GDP is at $700 bill worth of GDP and the economy is currently at $400 bill. If Marginal Propensity to Consume {MIPC} 75% (035), by how should Autonomous Consumption (Cu) increase to increase the level ofReal GDP by $300 to reach full employment GDP at $400 hill? $Cu =

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