The rate of output and planned expenditures for the economy of Timbuktu are shown in the following table: Total Output Planned Aggregate Expenditures (Two-Sector Economy) (Real GDP in billion dollars)...


The rate of output and planned expenditures for the economy of Timbuktu are shown in the following table:



              Total Output Planned Aggregate Expenditures (Two-Sector Economy)


(Real GDP in billion dollars) (in billions)



                   5,000 5,250


                   5,500 5,500


                   6,000 5,750


                   6,500 6,000


                   7,000 6,250



c) What is the equilibrium rate of income/output of Timbuktu economy?



d) If the economy's full employment rate of output is $6.0 trillion, what will happen to the unemployment rate assuming that it will persist into the future?



e) What would happen to the equilibrium level of output/income if there will be an autonomous increase in investment of $250 billion?



Jun 08, 2022
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