Calculate autonomous expenditure


Problem: The spreadsheet lists the components of aggregate planned expenditure in the United Kingdom. The numbers are in billions of pounds.

A    B    C    D    E    F    G
1    Y    C    I    G    X    M
2    A    100    110    50    60    60    15
3    B    200    170    50    60    60    30
4    C    300    230    50    60    60    45
5    D    400    290    50    60    60    60
6    E    500    350    50    60    60    75
7    F    600    410    50    60    60    90

Q1. Calculate autonomous expenditure.

Q2. Calculate the marginal propensity to consume

Q3. What is aggregate planned expenditure when real GDP is 200 billion pounds?

Q4. If real GDP is 200 billion pounds, what is happening to inventories?

Q5. If real GDP is 500 billion pounds, what is happening to inventories?

Q6. Calculate the multiplier.

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Macroeconomics: Calculate autonomous expenditure
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