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(Solved): 2. A tabular approach to Keynesian equilibrium The following table shows some information on a hypo ...
2. A tabular approach to Keynesian equilibrium The following table shows some information on a hypothetical economy. The table lists real GDP, consumption (C), investment (I), government spending (G), net exports ( \( X-M) \), and aggregate expenditures (AE). In this problem, assume that investment, government spending, and net exports are independent of the economy's real GDP level. Using the numbers provided in the table, enter the correct numbers in the empty cells. Then, using the dropdown selection menus in the right-most column, indicate whether output will tend to increase, decrease, or remain in equilibrium at esch level of real GDP in the table. (Note: The table uses negative numbers to indicate an unplanned inventory investment depletion and positive numbers to indicate an unplanned inventory investment. accumulation.) True of False: The most fundamental assumption behind the agoregate expenotures model is that prices in the economy are flexibie. True false When aggregate expenditures are less than real Gos, there is an unplamned inventory investment This will prompt firms to employment and production.