(Transcript of audio with descriptions. Transcript includes narrator headings and description headings of the visual content)
(Speaker)
In this part you were asked to find the income expenditure equilibrium, GDP.
(Description)
Using the table below, what is Y asterisk, income-expenditure equilibrium GDP? Table shows, GDP, disposable income, YD, consumer spending, C, planned investment spending, I sub Planned, planned aggregate spending, AE sub Planned, and unplanned investment spending, I sub Unplanned. Table has 6 columns labeled GDP, YD, C, I sub Planned, AE sub Planned, I sub Unplanned. There are 9 rows of data in the table. Columns have the following entries: GDP - 0, 400, 800, 1200, 1600, 2000, 2400, 2800, and 3200. YD - 0, 400, 800, 1200, 1600, 2000, 2400, 2800, and 3200. C - 100, 400, 700, 1000, 1300, 1600, 1900, 2200, and 2500. I sub planned - all equal to 300. AE sub Planned - 400, 700, 1000, 1300, 1600, 1900, 2200, 2500, and 2800. I sub Unplanned - negative 400, negative 300, negative 200, negative 100, 0, 100, 200, 300, and 400. All numbers are given in billions of dollars.
(Speaker)
We have provided the summary table to help. Equilibrium is found at the point where GDP equals planned aggregate spending. In other words, there are no unwanted changes in inventory investment. Firms produce the levels of goods and services demanded by households and firms.
(Description)
Income-expenditure equilibrium Y asterisk occurs where GDP equals AE sub Planned. The fifth row of the table with GDP equal to planned aggregate spending is highlighted.