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The table below gives information for the nation of Joyland. Use the information provided in the table to answer a) - d). Show all work.
The table below gives information for the nation of Joyland. Use the information provided in the table to answer a) - d). Show all work. a) What is the equilibrium level of real GDP, the marginal propensity to consume and the marginal propensity to import of Joyland? (3 point) b) How do firms' inventories compare to their planned inventories in the nation if real GDP equals, i) $1,800 billion, ii) $1,000 billion and iii) $800 billion? (1.5 points) c) On a graph of the aggregate expenditure model, label the following: equilibrium real GDP, autonomous spending, and area of unplanned decrease in inventories. (2 points) d) If investment spending increases to $570 billion, but nothing else changes, what is the change in the equilibrium GDP? What is the value of the multiplier? Interpret the value of multiplier using a complete and meaningful sentence. (3.5 points) The table below gives information for the nation of Joyland. Use the information provided in the table to answer a) - d). Show all work. a) What is the equilibrium level of real GDP, the marginal propensity to consume and the marginal propensity to import of Joyland? (3 point) b) How do firms' inventories compare to their planned inventories in the nation if real GDP equals, i) $1,800 billion, ii) $1,000 billion and iii) $800 billion? (1.5 points) c) On a graph of the aggregate expenditure model, label the following: equilibrium real GDP, autonomous spending, and area of unplanned decrease in inventories. (2 points) d) If investment spending increases to $570 billion, but nothing else changes, what is the change in the equilibrium GDP? What is the value of the multiplier? Interpret the value of multiplier using a complete and meaningful sentence. (3.5 points)
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