(Transcript of audio with descriptions. Transcript includes narrator headings and description headings of the visual content)
(Speaker)
In this question you are going to use the mathematical representation for planned aggregate spending to solve for equilibrium GDP and the multiplier.
(Description)
The problem is presented. In an economy without government purchases, transfers, or taxes, and without imports or exports, aggregate autonomous consumer spending is 500 billion dollars, planned investment spending is 250 billion dollars, and the marginal propensity to consume is 0.5. Write the expression for planned aggregate spending in the following format: AE sub Planned equals: blank billion dollars, plus blank times YD, plus blank billion dollars.
(Speaker)
First, you are asked to use the values in the question to write an equation for planned aggregate expenditures. Following format of the text the equation is written as a function of autonomous consumption, marginal propensity to consume, and planned investment spending. Using the values from the problem, autonomous consumption is 500 billion dollars. Marginal propensity to consume is 0.5, and planned investment spending is 250 billion dollars.
(Description)
Expression in the format of the text is given as follows: AE sub Planned equals A plus MPC times YD plus I sub Planned. After substituting values: AE sub Planned equals 500 billion dollars, plus, 0.5 times YD, plus 250 billion dollars.