51-53] Refer to the following table and answer the questions. The table below il

Question

51-53] Refer to the following table and answer the questions. The table below illustrates the real domestic product, and the level of employment to produce each level of output, and aggregate expenditure based upon each level of the output (the real domestic product). For example, economy should employs 80 mil workers to produce GDP of $500 bil and at that level of GDP, aggregate expenditure is $560 bil. Economy should employs 100 mil workers to produce GDP of $600 bil. and at that level of GDP, aggregate expenditure is $630 bil..... # employment Real Domestic Aggregate Expenditures (unit mil.) Output (unit: bil) (C+I+G+NX) (unit: bil) 80 100 120 145 170 $500 600 700 800 900 $540 620 700 780 860

Explanation / Answer

51) MPC=0.8 and multiplier=1/1-mpc=1/1-0.8=5

52)equilibrium=700 i.e. Where AE=AS=700

54) final value is 6 which will be part of GDP

55)B. Labor force=employed+unemployed. LFPR=LF/total pop=90/100=0.9 and unemployment=30/90=33.33%

56)growth rate in GDP=500/4000*100=12.25%

57)I=600 because Y=C+I+G+NX

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