Review Checklist for Exam III (1)

Topic: Working with Multipliers ( macroeconmics) Need help with the following exercises Please show step by step1.Assume the MPC is 0.70 and the government increases spending on public school programs by $20 billion. What is the value of the initial impact on real GDP? What is the value of the total impact on real GDP? 2. Assume the MPC is 0.70 and the government increases spending on public school programs by $20 billion. What is the value of the initial impact on real GDP? What is the value of the total impact on real GDP?

Q-1 The following table shows income and consumption: Calculate: A- Saving (S), B- Marginal propensity to consume (MPC),   C- Marginal propensity to save (MPS), D- Average propensity to consume (APC) E- Average propensity to save (APS).                                                                                                                                                                                                                       Y             C1000    15002000    26003600    30004800    39005500    42006200    4800

Please give a detailed solution with an explanation.

The diagram below shows the consumption schedule for a private closed economy. The level of planned investment is $6 billion. a. Using the diagram, draw the aggregate expenditures schedule for this economy and then identify equilibrium GDP. Instructions: (1) Use the tool provided 'C + I'to draw the aggregate expenditures schedule for this economy. (2) Use the tool provided 'Equilibrium' to identify the new equilibrium GDP. Aggregate Expenditures Schedule 50 Tools 40 C+1 Equilibrium 30 20 10 10 20 30 40 50 Real GDP (billions of dollars) Instructions: In part b, enter your answer as a whole number. In part c, round your answer to 1 decimal place. b. What is the equilibrium GDP for this country? billion c. What is the marginal propensity to consume for this country? Aggregate expenditures (billions of dollars) 18

1.12 Study the following diagram and answer the question that follows. Expenditures (billions of dollars per year) 3500 3000 2500 2000 1500 1000 500 Figure 9.1 45 500 1000 1500 2000 2500 3000 3500 Income (billions of dollars per year) At an income level of $2,000 billion, a) Consumption equals $1,500 billion. b) Saving equals $0. c) The MPC equals 0.80. d) There is dissaving.

Step 2: The Effect of Saving on Total Expenditures The following table shows data for the economy before the decrease in saving. Suppose that the decrease in saving causes consumption to rise from $280 million to $320 million. Assume Say's law holds in this economy. Fill in the data for the economy after the decrease in saving. Before Saving Decrease $280 million $200 million $250 million $500 million $300 million Consumption (C) Investment (I) Government Purchases (G) Exports (EX) Imports (IM) As a result of the decrease in saving, total expenditures will After Saving Decrease $320 million million million $500 million $300 million

I just need help on f g and h

SHORT ANSWER QUESTIONS Increase in foreign holdings of assets in the United States Exports of goods Imports of services Statistical discrepancy Net transfers Exports of services Imports of goods Income payments on investments Increase in U.S. holdings of assets in foreign countries Income received on investments b. the balance of trade c. the balance on the financial account $3,288 31. The following are hypothetical data on the U.S. balance of payments. You can assume the balance on capital account is zero. Use the data to calculate the following (SHOW YOUR WORK) a. the balance on the current account d. statistical discrepancy -$29 1 64 694 -1,520 -444 -3,286 545 12. State how each of the following will affect the relative values of the U.S. dollar and the British pound (say which currency appreciates and which currency depreciates): (a) U.S. citizens switch from buying stock in U.S. companies to buying stock in British companies. (b) The inflation rate in the United States decreases…

TOPIC: Comparing total expenditures and total production

Q-1 The following table shows income and consumption: Calculate: A- Saving (S), B- Marginal propensity to consume (MPC), C- Marginal propensity to save (MPS), D- Average propensity to consume (APC) and E- Average propensity to save (APS). YCSMPCMPS/APCAPS 300 360 410 400

1.12 Study the following diagram and answer the question that follows. Expenditures (billions of dollars per year) > > 3500 3000 2500 2000 1500 1000 500 Figure 9.1 500 1000 1500 2000 2500 3000 3500 Income (billions of dollars per yazari At an income level of $2,000 billion, a) Consumption equals $1,500 billion. b) Saving equals $0. c) The MPC equals 0.80. d) There is dissaving. F 뉴 C connex

Only typed answer

Q1: Refer to the information provided in the Table below, answer the questions that follow: Aggregate Income ($billion) Aggregate Saving -100 150 -85 300 -70 450 -55 600 -40 a. What is the society's Marginal propensity to consume (MPC)? b. If MPC is constant, at income level of $900 billion, what would be the aggregate consumption level? c. What is the simple multiplier for this economy?

MACROECONOMICS  Topic: Multipl

K Use the information in the table to answer the following questions All numbers are in bilions of 2012 dollars Planned Investment (1) $1,000 $1.000 $1,000 $1,000 $1,000 Real GDP (Y) $12.000 $13,000 Consumption (C) $10.100 $10,900 $14,000 $15,000 $15,000 The equilibrium level of GDP is $ billion The MPC is (enter your response to two decimal places) Suppose that net exports increase by $400 billion Using the multiplier formula determine the new level of GDP A $400 billion increase in net exports leads to a change in spending of $ billion, so the new level of GOP will be S billion $11,700 $12,500 $13,300 Government Purchases (G) $2.000 $2.000 $2.000 $2,000 $2.000 Net Exports (NX) -$500 -$500 -$500 -$500 -$500

please answer in text form and in proper format answer with must explanation , calculation for each part and steps clearly

Use the information in the table to answer the following questions. All numbers are in billions of 2012 dollars. Planned Investment (1) Real GDP (Y) $14,000 $15,000 $16,000 $17,000 $18,000 The equilibrium level of GDP is $ The MPC is billion. Consumption (C) $11,000 $11,750 $12,500 $13,250 $14,000 $1,500 $1,500 $1,500 $1,500 $1,500 (enter your response to two decimal places). Suppose that net exports increase by $400 billion. Using the multiplier formula, determine the new level of GDP. A $400 billion increase in net exports leads to a change in spending of $ billion, so the new level of GDP will be $ billion. Government Purchases (G) $2,500 $2,500 $2,500 $2,500 $2,500 Net Exports (NX) - $500 - $500 - $500 - $500 - $500

Using the table below, answer the following question: Real GDP ConsumptionPlanned (Y) GovernmentNet Aggregate of Investment purchases Exports (G) (C) Expenditure (AE) (1) (NX) 650 85 195 90 320 690 750 145 195 90 320 750 850 205 195 90 320 810 950 265 195 90 320 870 Find the value of the multiplier in this economy? Show your calculations. Answer: Give your reasons A- в I Fr of II

5 The graph shows aggregate expenditures for the fictitious country of Carpistan. Suppose the government of Carpistan increases government expenditures in order to boost the economy. Move the appropriate curve or curves to show the effect of this increase. Next, place point A to show where actual aggregate expenditures equals planned aggregate expenditures. Aggregate Expenditures (AE) 10 9 5 0 1 3 4 D Real GDP (Y) 16 7 11 YAB AR 2.0 10

1. Use the following information from a fictional economy: Consumption, C = 250 + 0.8 Yd Investment, I = 200 Government Spending, G = 100 Taxes, T = 0.2 Y Net Exports, NX = 50 - 0.4 Y Disposable Income, Yd = Y-T %3D Real GDP = Y %3D (a) What is equilibrium Real GDP (Y) for this economy? (b) What is equilibrium C for this economy? (c) What is equilibrium NX for this economy? (d) What is equilibrium T for this economy? (e) What is equilibrium YD for this economy?

How would I do D?

TOPIC: Deriving and exploring the total expenditures curve

2

please answer in text form and in proper format answer with must explanation , calculation for each part and steps clearly

This problem has been solved! See the answer Explain the relationship between the aggregate expenditures model in graph (A) below and the aggregate demand–aggregate supply model in graph (B) below. In other words, explain how points 1, 2, and 3 are related to points 1’, 2’, and 3’.

Q-1 The following table shows income and consumption: Calculate: A- Saving (S), B- Marginal propensity to consume (MPC), C-Marginal propensity to save (MPS), D- Average propensity to consume (APC) E- Average propensity to save (APS). Y S MPC MPS АРС APS 200 260 360 300 480 390 550 420 620 480

d. What is the value of the multiplier? e. If planned investment spending falls to $200 billion, what will be the new Y*? f. If autonomous consumer spending rises to $200 bil- lion, what will be the new Y*?

6.

How would I do a and b?

1. Use the following table with information on the consumption behavior of the people of Gotham to answer the following questions: Disposable Income Consumption $300 $440 $0 $200 a. What is the value of 'a' or autonomous consumption in this economy? b. What is the value of 'b’ or the Marginal Propensity to Consume (MPC) in this economy? Interpret the meaning of this MPC value in one sentence.

Q3.    Real GDP Consumption Planned Investment Government Purchases Net Exports $5,000 $4,500 $500 $325 -125 6,000 5,300 $500 $325 -125 7,000 6,100 $500 $325 -125 8,000 6,900 $500 $325 -125   Answer the questions based on the table below. The values are in millions of dollars.  What is the equilibrium level of real GDP? What is the MPC? If potential GDP is $7,000 million, is the economy at full employment? If not, what is the condition of the economy? If the economy is not at full employment, by how much should government spending increase so that the economy can move to the full employment level of GDP?

Can you help me with d/ e and f

how to get APC and APS