a) [5 points] Write down the aggregate expenditure function. b) [5 points] Suppose that
autonomous consumption is $1,500, government purchases are $1,250, planned investment
spending is $1,250, net exports are $250, and the MPC is 0.75 . What is the value of aggregate
expenditure? c) [10 points] For GDP of $16,000, what is the value of the unintended change in
inventories? d) [10 points] Derive the macroeconomic equilibrium, Y as a function of
expenditure variables. What is equilibrium GDP? e) [20 points] For GDP of $12,000, what is the
value of aggregate expenditure in equilibrium, and what is the value of the unintended change in
inventories? Show your calculations. f) [10 points] Suppose that autonomous consumption is
500, government purchases are $1,000, planned investment spending is $1,250, net exports are
$250, and the MPC is 0.8 . What is equilibrium GDP?.
Aggregate Expenditure & Equilibrium GDP Calculation
1. a) [5 points] Write down the aggregate expenditure function. b) [5 points] Suppose that
autonomous consumption is $1,500, government purchases are $1,250, planned investment
spending is $1,250, net exports are $250, and the MPC is 0.75 . What is the value of aggregate
expenditure? c) [10 points] For GDP of $16,000, what is the value of the unintended change in
inventories? d) [10 points] Derive the macroeconomic equilibrium, Y as a function of
expenditure variables. What is equilibrium GDP? e) [20 points] For GDP of $12,000, what is the
value of aggregate expenditure in equilibrium, and what is the value of the unintended change in
inventories? Show your calculations. f) [10 points] Suppose that autonomous consumption is
500, government purchases are $1,000, planned investment spending is $1,250, net exports are
$250, and the MPC is 0.8 . What is equilibrium GDP?
![a) [5 points] Write down the aggregate expenditure function. b) [5 points] Suppose that
autonomous consumption is $1,500, government purchases are $1,250, planned investment
spending is $1,250, net exports are $250, and the MPC is 0.75 . What is the value of aggregate
expenditure? c) [10 points] For GDP of $16,000, what is the value of the unintended change in
inventories? d) [10 points] Derive the macroeconomic equilibrium, Y as a function of
expenditure variables. What is equilibrium GDP? e) [20 points] For GDP of $12,000, what is the
value of aggregate expenditure in equilibrium, and what is the value of the unintended change in
inventories? Show your calculations. f) [10 points] Suppose that autonomous consumption is
500, government purchases are $1,000, planned investment spending is $1,250, net exports are
$250, and the MPC is 0.8 . What is equilibrium GDP?](https://image.slidesharecdn.com/a5pointswritedowntheaggregateexpenditurefunction-230322164148-d774b7b6/85/a-5-points-Write-down-the-aggregate-expenditure-function-b-5-po-pdf-1-320.jpg)
