Question
The Investments are $30 and the Government Spending $25. Using the following information complete the chart. Show your steps. (3 marks) 1. Determine AE using
The Investments are $30 and the Government Spending $25. Using the following information complete the chart. Show your steps. (3 marks)
1. Determine AE using the data below, then fully fill out the table. 1b. where is the economy's equilibrium?
2. Confirm the equilibrium at the location you selected in part b using the injections-withdrawals method. Withdrawals now equal injections.
3. How would an increase in government spending to $29 affect AE and equilibrium?
Domestic Output | Taxes | Disposable Income | C | I | S | G | AE |
100 | 10 | 90 | 110 | ||||
113 | 11 | 102 | 114 | ||||
120 | 15 | 105 | 107 | ||||
135 | 20 | 115 | 111 | ||||
145 | 24 | 121 | 115 | ||||
166 | 27 | 139 | 128 | ||||
198 | 35 | 163 | 141 | ||||
207 | 42 | 165 | 152 |
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