Week 2 tasks Q ~ Search in Document Layout References Review View '+ Share ~ Home Insert Design Mailings Acrobat inherit 10 A- A Aa A AaBbCcDdE AaBbCcDdE AaBbCcDc AaBbCcDdEE Paste I U abe X2 X2 A. A Normal No Spacing Heading 1 Heading 2 Styles Create and Share Request Pane Adobe PDF Signatures Real GDP 45 line 800 700 I(AD) #TE = C + 1 600 500 45 Total Expenditures (billions of dollars) 300 200 100 0 100 200 300 400 500 600 700 800 Real GDP (billions of dollars) Page 2 of 3 220 words [ English (United States) E + 116%Home Insert Design X . . A .: I: 1 A '7' ' E ' '"her't 14 A A' '3 A! " i '- '2' '1 ;AaBbCCDdE AaBchDdB AaBchDr AaBchDdEe ,' F0 [E Normal Paste 6' BIQ'abexzxz'p'A' EE':'&';V Layout References EI Week 2 tasks Mailings Review View Acrobat 4 i 4 1 || 0 || No Spacing Heading1 Heading 2 Styles Refer to Exhibit 10-5 above and answer all questions below: a) Choose a level of Real GDP that is not at equilibrium where AD = Real GDP $ b) If autonomous consumption (Co) decreases, it follows that TE (or AD) will shift upward/downwardot be affected at all. e) If Real GDP stands at $600 billion, inventories will Fall/Rise/Remain Unchanged. d) If Real GDP is $600 billion, rms will most likely (chose either I, H, or III) L Increase production to increase inventories to their optimum levels. H. Will neither increase nor decrease production since the economy is in equilibrium HI. Will cutback production to reduce inventories to their optimum levels e) Suppose full employment level of Real GDP is at $600 bill and the economy is currently at $400 bill level of Real GDP. If the income multiplier is estimated to be 345, by how much shald Autonomous Consumption (Co) change to push the level of Real GDP to change to reach the full employment level of Real GDP at the $600 bill? $Co = v :4- Share A 8m Create and Share Request Pane Adobe PDF Signatures Page 3 of 3 220 words III? English (United States) a V+ 116%