Table 1Real GDPConsumptionPlanned InvestmentGovernment PurchasesNet Exports$2,000$1,600$250$250$100 2,500 2,000 250 250 100 3,000 2,400 250 250 100 3,500 2,800 250 250 100 Table 2Real GDPAggregate ExpenditureUnplanned Change in InventoriesReal GDP Will...(increase, decrease, or be in equilibrium)$2,400 2,500 3,000 3,500 Examine the Table 1 information provided and perform the following activities for Table 2:For each level of Real GDP, calculate aggregate expenditure, unplanned change in inventories, and indicate what will happen to GDP (increase, decrease or be in equilibrium). Explain how you derived the Aggregate Expenditure and Unplanned Change in Inventories Explain how the values in the Unplanned Change in Inventories column dictate what will happen to the Real GDP.

As demonstrated after WWII, Keynesianism has advanced in its ability to overcome economic downturns…

Answered: Table 1 Real GDP Consumption Planned…

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter7: Production And Growth

Section: Chapter Questions

Problem 5CQQ

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Table 1

Real GDP	Consumption	Planned Investment	Government Purchases	Net Exports
$2,000	$1,600	$250	$250	$100
2,500	2,000	250	250	100
3,000	2,400	250	250	100
3,500	2,800	250	250	100

Table 2

Real GDP	Aggregate Expenditure	Unplanned Change in Inventories	Real GDP Will... (increase, decrease, or be in equilibrium)
$2,400
2,500
3,000
3,500

Examine the Table 1 information provided and perform the following activities for Table 2:

For each level of Real GDP, calculate aggregate expenditure, unplanned change in inventories, and indicate what will happen to GDP (increase, decrease or be in equilibrium). Explain how you derived the Aggregate Expenditure and Unplanned Change in Inventories
Explain how the values in the Unplanned Change in Inventories column dictate what will happen to the Real GDP.

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