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The purpose of this assignment is to practice the economic theory of macroeconomic equilibrium. Determining Macroeconomic...

The purpose of this assignment is to practice the economic theory of macroeconomic equilibrium.

Determining Macroeconomic Equilibrium

Fill in the blanks in the following table and determine the equilibrium level of real GDP.

Real GDP

​(Y​)

Consumption

​(C​)

Planned Investment

​(I​)

Government Purchases

​(G​)

Net Exports

​(NX​)

Planned Aggregate Expenditure

​(AE​)

Unplanned Change in Inventories

​$8,000

​$6,200

​$1 comma 6751,675

​$1 comma 6751,675

minus−​$500500

​9,000

​6,850

1 comma 6751,675

1 comma 6751,675

negative 500−500

​10,000

​7,500

1 comma 6751,675

1 comma 6751,675

negative 500−500

​11,000

​8,150

1 comma 6751,675

1 comma 6751,675

negative 500−500

​12,000

​8,800

1 comma 6751,675

1 comma 6751,675

negative 500−500
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Answer #1
Real GDP (Y) Consumption (C) Planned Investment (Ip) Government Purchases (G) Net Exports (NX) Planned Aggregate Expenditure (AE) Unplanned change in inventories
8000 6200 1675 1675 -500 9050 -1050
9000 6850 1675 1675 -500 9700 -700
10000 7500 1675 1675 -500 10350 -350
11000 8150 1675 1675 -500 11000 0
12000 8800 1675 1675 -500 11650 350

AE = C + I + G + NX

Unplanned change in inventories = Y - AE

At equilibrium point; Y = AE

Therefore, the equilibrium level of real GDP is $11000.

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