Below is a hypothetical table such as would be generated by the Bureau of Labor Statistics when reporting historical and forecasted levels of gross domestic product for the United States. Use the answer table to fill in the blanks for the missing estimates. Make sure you show your work.
1998 Gross Domestic Product Answer (Remember to show work):
2028 Personal Consumption Expenditures Answer (Remember to show work):
2008 Gross Private Domestic Investment Answer (Remember to show work):
2018 Exports Answer (Remember to show work):
Explain what the consumption function shows, and describe what is held constant along the consumption function.
Your response must be at least 200 words in length.
In your own words, describe what happens when firms and workers underestimate future prices in the economy. Focus your answer on what would happen to actual output as opposed to the expected potential output.
Your response must be at least 500 words in length.
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