Edmund6527 Edmund6527

06-06-2023
Business

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. Assume an economy is represented by the following: C = 200+ 0.85Yd G = 2000 I = 200 T = 1800 a. Suppose actual output is 3000. What is the level of planned expenditures at this level of output? (2 marks) (1 marks) i. What is the level of unplanned changes in inventories? Calculate the equilibrium level of output. b. (2 marks) c. Based on your analysis in Part (b), calculate the levels of consumption and saving that occur when the economy is in equilibrium. (2 marks) d. Now suppose that G decreases by 200 and T simultaneously decreases by 150. Calculate the new equilibrium level of income. (3 marks) e. Determine if the economy is operating with a deficit or surplus. (1 marks) (2 marks) 11. List and explain the three characteristics of money.

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