Consider the following table: PLANNED GOVT OUTPUT NET CONSUMPTION INVESTMENT SPENDING 2100 100 300 400 2600 100 300 400 3100 100 300 400 3600 100 300 400 4100 100 300 400 4600 100 300 400 Assume the following Consumption Function C=800+0.6*Yd, with Yd=Disposable Income For questions e-g, provide the multiplier formulas a. Write the Aggregate Expenditure formula (including Government) b. Complete the table c. What is the level of unplanned inventory change for output equal to 2600 d. What is the equilibrium output level e. Assume that government spending increases by 50. What is the new equilibrium output f. Assume that taxes are cut to 50. What is the new equilibrium output? g. Assume that government spending and taxes are both cut by 50. What is the new equilibrium output TAXES DISPOSABLE INCOME PLANNED UNPLANNED AGGREGATE INVENTORY EXPENDITURE CHANGE
