Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The table below gives information for the nation of Joyland. Use the information provided in the table to answer a) - d). Show all work.

image text in transcribed

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)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Accounting

Authors: Susan Hamlen

5th Edition

1618534246, 9781618534248

More Books

Students also viewed these Accounting questions

Question

What are the three steps to changing bad habits? (p. 224)

Answered: 1 week ago