Homework 04DueOct 16 at 1:59amPoints100Questions60Availableuntil Oct 16 at 1:59amTime LimitNoneInstruc±onsThis quiz was locked Oct 16 at 1:59am.A±empt HistoryAttemptTimeScoreLATESTAttempt 1 572 minutes66 out of 100Score for this quiz: 66out of 100Submitted Oct 15 at 11:13pmThis attempt took 572 minutes.Homework 04Lessons 06 and 07100 pointsThis homework is composed of multiple choice, fill-in-the-blank and true/false questions. Select or enter your responses for each question.There is no time limit.It will be available for review starting the day after the assignment is due.3 / 3 ptsQuestion 1Part 1: AE Problem (11 questions worth 3 points each for a total of 33 points).FOR FILL-IN-THE-BLANK questions:If your answer is in decimal form, round to 2 decimal places.For example, if your answer is .412, enter it into the fill-in-the-blank as .41, or if your answer is 1.415,enter it into the fill-in-the-blank as 1.42. If there are no decimals in your answer, you will simply enterthe number; so if your answer is 2, enter 2 with no decimals. Do not enter any extra spaces, do notenter commas or $ or % symbols.Suppose the initial conditions of the economy are characterized by the following equations in blackfont. We then shock the economy as shown in the red font.1) C = a+ a(Y-T) + a(WSM) + a(WRE) + a(CC) + a(r) 1’) C = a+ a(Y-200) + a(10,000) + a(15,000) + a(120) + a(4) 1’') C = a+ a(Y-200) + a(12,000) + a(15,000) + a(160) + a(4) 2) I = b+ bAS + bCF + b(r) 2’) I = b+ b(140) + b(1500) + b(4) 2’) I = b+ b(180) + b(2000) + b(4) 0123450123 45012345012301230123

Answer 2:3) G = G 3’) G = 200 4) X-M = X-M 4’) X-M = -200 4’) X-M = -400 5) AE = C + I + G + X-M Where: a= 50, a= .60, a= .05, a= .10, a= .5, a= -400, b= 100, b= .5, b= .2, b= -50Use the initial conditions above to get expressions for the Consumption function, Investmentand the AE equation.Fill in the intercept and slope values to correctly complete the consumption function: C = 390+ 0.60123450123Y

Correct!0.6Correct!.6 Correct Answer0.60 Correct Answer.60 Correct Answer0 / 3 ptsQuestion 2What is the value of Investment: I = ________220You AnsweredCorrect Answers270 1.5 / 3 ptsQuestion 3Fill in the intercept and slope values to correctly complete the AE equation: AE = 610+ 0.6Y

Answer 2:

You Answered660 Correct Answer0.6Correct!.6 Correct Answer.60 Correct Answer0.60 Correct Answer0 / 3 ptsQuestion 4The value of equilibrium output (Y) = _______

You AnsweredCorrect Answers1650 0 / 3 ptsQuestion 5The value of equilibrium consumption (C) = ______

3 / 3 ptsQuestion 6We now incur shocks to the economy as provided above in the red font. Use these newconditions to get expressions for the Consumption function, Investment and the AE equation.Fill in the intercept and slope values to correctly complete the new consumption function: C =510+ 0.6Y

Answer 2:

Correct!0.6Correct!.6 Correct Answer.60 Correct Answer0.60 Correct Answer0 / 3 ptsQuestion 7What is the newvalue of Investment: I = ______340You AnsweredCorrect Answers390 1.5 / 3 ptsQuestion 8Answer 1:Answer 2:Fill in the intercept and slope values to correctly complete the newAE equation: AE =650+ 0.6Y650You Answered700 Correct Answer0.6Correct!