Real Output Demanded (in $ billions) by AggregateAggregate Price Net Level Consumer Investors + Government Exports Demand Supply 120 80 15 20 10 200 110 92 16 20 12 180 100 104 17 20 14 155 90 116 18 20 16 145 80 128 19 20 18 130 a. What is the level of equilibrium real GDP? billion b. What is the equilibrium price level? c. If full employment occurs at a real GDP of $140 billion, what kind of GDP gap exists?Ellblti .' (Click to select) v cl. How large is that gap? $ :| billion e. Which macroeconomic problem exists here? (Click to select v Given the individual consumption function (32 $1000 + 0.80 YD, Instructions: Enter your responses as a whole number. a. How much is saved if YD is $50,000? $: b. How much does consumption increase if YD increases by $1,000? $E THE ECONOMY TOMORROW: Predict the impact on aggregate demand if a. Unemployment claims rise. Aggregate demand would . b. Stock prices are increasing rapidly. Aggregate demand would (Click to select) v . c. The request for new building permits is much higher than last year. Aggregate demand would |(Click to select) v| . If the consumption function is C: $700 billion + 0.7Y, Instructions: In part a, enter your response rounded to one decimal place. In parts b-d, enter your responses rounded to the nearest whole number. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. a. What is the MPC? E b. How large is autonomous consumption? $ billion c. How much do consumers spend with incomes of $5 trillion? $ :| billion d. How much do they save? Problem 10-04 (Algo) Suppose that investment demand increases by $400.0 billion and no leakages occur except household saving. Assume further that households have a marginal propensity to consume of 85 percent. Instructions: Enter your responses rounded to one decimal place a. Compute four rounds of multiplier effects. Changes in This Cumulative Cycle's Change in Spending Spending (in billions) (in billions) First cycle $ 400.0 $ 400.0 Second cycle Third cycle Fourth cycle b. What will be the final cumulative impact on spending? billion600 AS 500 400 Price Level(average price) 300 200 100 AD O 0 200 400 600 800 1000 1200 1400 Real GDP($ billions per year)Instructions: Enter your responses as a whole number. a. What is the equilibrium rate of GDP? $ billion b. If full-employment real GDP is $650 billion, what problem does this economy have? C\"This economy has an inflationary gap. QThis economy has a recessionary gap. C\"This economy does not have a problem. c. How large is the real GDP gap? $ billion