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The spreadsheet lists the components of aggregate planned expenditure in the United Kingdom. The numbers are in billions of pounds.
Y C I G X MA 100 110 50 60 60 15B 200 170 50 60 60 30C 300 230 50 60 60 45D 400 290 50 60 60 60E 500 350 50 60 60 750F 600 410 50 60 60 90
a. Calculate autonomous expenditute.
b. Calculate the marginal propensity to consume.
c. What is aggregate planned expenditure when real GDP is 200 billion pounds?
d. If real GDP is 200 billion pounds, what is happening to inventories?
e. If real GDP is 500 billion pounds, what is happening to inventories?
f. Calculate the multiplier.
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