1. - ., Calculate the values for government purchases (G), private domestic saving (S), and private domestic investment (I) from the following information (all variables are in billions of dollars). 5,200 YD = 4,400 C = 4,100 budget deficit trade surplus (NX) national income Y BD = 150 disposable income consumption TD = 110 %3D
Q: Question 3. Suppose that an economy can be described by the following equations: Y=C+I+ G, Y=5,000,…
A: *Answer :-
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A: C = 20 + b*Y_{D} I = 44 T = 60 G = 22 M = 16 X = 32
Q: Government Purchases (GG) 150 Taxes minus Transfer Payments (TT) 180 Consumption (CC) (___)…
A: Given: GDP(Y) = $480 million Investment (II) = $105 million Government purchases (GG) = $150 million…
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A: a) Given, Consumption C=100 + 0.75Y Investment Ig= 60 Govt. expenditure G= 0…
Q: ADVANCED ANALYSIS Assume that the consumption schedule for a private open economy is such that…
A: Equilibrium level of GDP Y = C + I + G + NX Where C is consumption I is investment G is government…
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A: Using the given information, the equilibrium level of income is:
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Q: 2. Assume that gross private domestic investment is $800 billion and the government (state, local,…
A: * SOLUTION :- (2)
Q: Using the following data, determine: National Income (GDP) 1,275 billion…
A: At equilibrium Y = C + I + G + NX Where NX is net export , NX = X - M I.e. export minus import
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A: Private saving=consumption+-investment =10,000-300=97000
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A: Answer to the question is as follows :
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Q: 1. Saving and investment in the national income accounts The following table contains data for a…
A: There is no graph needed. No graph is given in the question. --------- At equilibrium, Y = C + I + G…
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Q: ADVANCED ANALYSIS Assume that the consumption schedule for a private open economy is such that…
A: Given: C = 100+0.9Y Ig = 60 G = 0 Xn = 10
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A:
Q: All figures in the table below are in billions. Assume that investment, lg, is Rot ale GDP…
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A: Formulas: 1. Saving (S) = Income (Y) - Consumption(C) 2. MPC = ∆C/∆Y 3. MPC + MPS = 1
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A: National savings refers to the sum of public savings and private savings.
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- Consider the following information (amounts in Kshs. Billions) C = 30 + 0.75Y I = 20 T = 0.4Y NX = 65 G = 45 Determine: a) Equilibrium National Income b) Government deficit/surplus c) Additional government expenditure required to raise equilibrium national income by Kshs. 50 billion.From the following information calculate the value of government purchases (G), consumption (C), and private domestic Investment (I) (all variables are In billions of dollars). National income Y = 6,000 tax revenues TA = 1,500 Private domestic saving S = 1 ,000 transfer payments TR = 700 net exports NX = -120 budget deficit BuD = 230Using the following data, determine: National Income (GDP) 1,275 billion Marginal propensity to consume, b 0.9 Proportional rate of taxes 0.35 Autonomous expenditure 45 billion Exports 400 billion Marginal propensity to import, MPIm 0.23 Part 1: Level of Canadian imports, M? Part 2: Level of Canadian net exports, NX? Part 3: Is the trade balance in: (answer 1 for Surplus or 2 for Deficit )
- Using what you know about national income accounting, answer the following as true, false, or uncertain and justify your answer: [Assume households either consume or save their income only.] a)If the private sector is balanced and transfers are held constant, an increase in taxes implies a decrease in net exports. b)An increase in disposable personal income must imply an increase in private investment. c)Holding the government budget deficit constant, an increase in net exports must imply an increase in disposable income.Show how a GH¢2,000 increase in government spending financed by a GH¢2,000 increase in taxes will affect the level of national income.Consider an economy similar to that in the preceding question in which investment is also $200, government purchases are also $500, net exports are also $30, and the price level is also fixed. But taxes now vary with income and, as a result, the consumption schedule looks like the following: GDP Taxes DI C $1,360 $320 $1,040 $810 1,480 360 1,120 870 1,600 400 1,200 930 1,720 440 1,280 990 1,840 480 1,360 1,050 Find the equilibrium graphically. What is the marginal propensity to consume? What is the tax rate? Use your diagram to show the effect of a decrease of $60 in government purchases. What is the multiplier? Compare this answer to your answer to Test Yourself Question 1. What do you conclude? GDP…
- Use the information in the table below to answer Q.3.1 to Q.3.3:GDP at market prices R397bnNet primary income payments to the rest ofthe worldR37bnIndirect taxes R23bnSubsidies R11bnConsumption of fixed capital R32bnQ.3.1 Calculate the value of gross national income (GNI) at market prices.Q.3.3 Calculate the value of net national income (NNI) at factor cost.Q.3.4 Identify the two major accounts of the balance of payments and explain the keydifference between the two accounts.Q.3.5 Define the term, “inflation” and indicate the index that is used to measure the rateof inflation.Consider a closed economy in which total output equals $13,000. The economy also has the following information: Consumption totals $6500 Government spending totals $2500 Private savings totals $3800 Carefully following all numeric instructions, tell me this economy's net taxes (T). Carefully following all numeric instructions, tell me this economy's public savings. Carefully following all numeric instructions, tell me this economy's economic investment.Consider the following data referring to any economy that has no foreign relations:GDPmp = 6000Disposable Income of the private sector (DIs.priv.)= 5100Budget Deficit = 200Private consumption = 100 Calculate the amount of:a) Public spending.b) Private savings (Spriv).c) Investment.
- Assuming you are the Minister of Finance and Economic Planning for Nigeria, in charge of Fiscal Policy. The Research Director of the Ministry brought you the following data on Nigeria’s for the previous fiscal year, 2021. An examination of the data reveals that, during the fiscal year 2021, households in Nigeria saved 20% of their disposable income (Yd) and spent the rest on consumption. In addition, ₦5,000.00 was spent on Consumption expenditure (C), which is independent of income and Gross Private Investment (I) was ₦ 7,000.00. Total Government expenditure (G) which stood at ₦8,000.00 was supposed to be financed by a lump sum tax of ₦2,000.00 (independent of income) and a proportional tax rate of 25% of national income. Exports (X) stood at ₦2,500.00. In addition, the country’s import (M) during the previous fiscal year comprises of ₦1,000.00 which was independent of the country’s national income and 10% which was dependent of the country’s national income. Given these data on…Assume that total expenditure E comprises the sum of government consumption, G, household consumption, C, and investment, I. Assume a closed macroeconomic system, so that income equals expenditure Y=E. If we define household saving, SH, as SH=Y-T-C, where Y is national income and T is total taxation, which of the following will be true? a. SH=I+G b. SH=I-G-T c. SH=I+(G-T) d. SH=IDisposable income is defined as national income - transfers + taxes. national income + transfers + taxes. national income - transfers - taxes. national income + transfers - taxes.