Consider the economy described by the following equations:
C = 1,600 + 0.8Y - T
IP = 800
NX = 100
G = 1,800
Outputy 13,900 14,100 14,300 14,500 14,700
T = 1,800
Output gap: =
a. Complete the table shown below to find short-run equilibrium output. Consider possible values for short-run eq they are given in the table below. Instructions: If you are entering any negative numbers be sure to include a negative sign (-) in front of those num Planned aggregate expenditure (PAE) €15,000 13980 14140 14300 14460 14620 PAE 80 -40 40 80 No No Yes No Y = PAE? No
b. Short-run level of equilibrium output: 14300
c. What is the output gap for this economy? Instructions: If you are entering any negative numbers be sure to include a negative sign (-) in front of those num unemployment rate should be rounded to two decimal places. 4.67 where Y*= 15,000