Assume the level of autonomous investment is $100 billion and aggregate expenditures equal consumption and investment. Based on the following table, answer the questions below. Employment, Output, Consumption, and Unplanned Inventory 11eb72e6_53af_64c6_b1ec_6dbfd36d811f_SM2340_00 a. Fill in the unplanned inventory column. b. Determine the MPC and MPS. c. If this economy employs a labor force of 40 million, what will happen to this level of employment? Explain and identify the equilibrium level of output.

Economics for Today 9th Edition by Irvin Tucker

Edition 9ISBN: 978-1305507111

Economics for Today 9th Edition by Irvin Tucker

Edition 9ISBN: 978-1305507111

Exercise 10

Assume the level of autonomous investment is $100 billion and aggregate expenditures equal consumption and investment. Based on the following table, answer the questions below.
Employment, Output, Consumption, and Unplanned Inventory

a. Fill in the unplanned inventory column.
b. Determine the MPC and MPS.
c. If this economy employs a labor force of 40 million, what will happen to this level of employment? Explain and identify the equilibrium level of output.

Explanation

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The level of the autonomous investment i...