If the planned aggregate expenditure (PAE) is given by the equation PAE = [1010 –1000r] + 0.8Y and the real interest rate is 5%, what would be the short-run equilibrium output (PAE = Y)?Group of answer choicesY = 2347Y = 3600Y = 8687Y = 4800

If we assume that the planned aggregate expenditure is given by the equation PAE = 960 + 0.8Y so that exogenous expenditure equalled 960, with the multiplier of 5, the 10-unit drop in exogenous expenditure would result in a _____________ in short-run equilibrium output.

Assume that planned aggregate expenditure is given by the equation: PAE = 150 + 0.5Y. What is the effect of a 5 unit increase in government expenditure on short-run equilibrium output?Group of answer choicesOutput increases by 10 unitsOutput increases by 5 unitsOutput increases by 0.5 unitsNo change in short-run equilibrium output

If planned aggregate expenditure (PAE) in an economy equals 2000 + 0.8Y and potential output (Y*) equals 9000, then this economy has:Group of answer choicesa recessionary gap.No output gap.no autonomous expenditure.an expansionary gap.no induced expenditure.

If short-run equilibrium output equals 10,000, the income-expenditure multiplier equals 5, the MPC equals .8, and potential output (Y*) equals 9000, then taxes must ______ by ________ to eliminate any output gap.Group of answer choicesdecrease, 20increase, 200increase, 225increase, 250decrease, 200

Suppose there are 100 firms each with a short run total cost of STC = q2 + q + 10, so that marginal cost is MC = 2q +1. If market demand is given by QD = 1050 - 50P, what is the equilibrium price?Question 5Select one:a.50.b.10.c.5.d.11.