Refer to Table 23-1. Using the table above, compute aggregate ...

[kodithompson]

Refer to Table 23-1. Using the table above, compute aggregate expenditure and identify the macroeconomic equilibrium.
 
  What will be an ideal response?

Question 2

A decrease in disposable income will shift the aggregate demand curve to the left.
 
  Indicate whether the statement is true or false

[smrtceo]

Answer to Question 1

The macroeconomic equilibrium is determined where aggregate expenditure = real GDP. The value for aggregate expenditure (C + I + G + NX) for each level of real GDP is given in the table below. The value where real GDP equals aggregate expenditure is 5,000, and this is equilibrium.

Real GDP Aggregate Expenditures
4,000 4,200
4,500 4,600
5,000 5,000
5,500 5,400

Answer to Question 2

TRUE

[kodithompson]

TYSM

[mochi09]

Excellent