Problems & Exercises for MACRO
UNIT THREE (FOR EXAM THREE)
Unit Three--Assignment Three--Web Problem 5
UNIT THREE (FOR EXAM THREE) Unit Three--Assignment Three--Web Problem 5Problems & Exercises for MACRO
Based on the pattern shown in the first two rows of the following table, can you fill in the rest of the blanks and determine the level of equilibrium GDP for this two-sector economy?
|
GDP/GDI |
C |
S |
I |
Aggregate Demand |
|
2000 |
2800 |
|
400 |
|
|
4000 |
4400 |
|
400 |
|
|
6000 |
|
|
|
|
|
8000 |
|
|
|
|
|
10000 |
|
|
|
|
|
GDP/GDI |
C |
S |
I |
Aggregate Demand |
|
2000 |
2800 |
-800 |
400 |
3200 |
|
4000 |
4400 |
-400 |
400 |
4800 |
|
6000 |
6000 |
0 |
400 |
6400 |
|
8000 |
7600 |
+400 |
400 |
8000 |
|
10000 |
9200 |
+800 |
400 |
9600 |
Note that in the equilibrium position A.D. = GDP and S = I
.Also, in a two-sector economy,
In your consumption column, use the difference between the first two entries(1600) as the difference between your other entries in this column.
Congratulations! You have completed the Problems & Exercises for Unit Three and are now ready to take your third exam. Good luck!
