1. If an economy has a budget surplus of 400, private savings of 1,200, and investment of 1,600, what will the balance of trade in this economy equal?
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- The following information is provided about an open economy with a government. Use theinformation to answer the questions that follow:C = 450 + 0.4YI = 350G = 150X = 70Z = 35 + 0.1YT = 0.15YYf = 1550 Q.2.5 Calculate what the new equilibrium income should be if the government of thiscountry decides to cancel all taxes, implying the tax rate would now be 0%In an open economy such that: C = 100 + 0.90 (Y – T) Md = 0.40 Y - 20 R I = 20 - 10 R Ms = 100 + BP X = 30 - 0.10 Y BP = X + K T = 40 K = 10 + 5R G = 50 Determine the equilibrium levels of Y and R. If G increases to $100, what are the new Y and R? What is the government spending multiplier?If consumption is C=100+0.75Yd Taxes is T=50+0.5Y Export is X=200 Import is M=50+0.25Y Government spending is G=150 Investment is I=200 Usethemultiplierapplicabletoexport,toexplainhowa100–billiondeclineindemand forexportcouldaffecttheeconomy’s: (i) Balanceofpayment
- Consider the following open economy model: C= C0 + cYD YD = Y I = I0 - br NX = N0 - n1Y + n2Yf + n3R M/P = M0 + m0Y - m1.r where AD = C + I + G0 + NX Derive the multipliers for the closed and open economy and make relevant comparison between them. Aşağıdaki açık ekonomi modelini düşünün:C = C0 + cYDY D = YBen = I0 - brNX = N0 - n1Y + n2Yf + n3RM / P = M0 + m0Y - m1.rburada AD = C + I + G0 + NXDefine the crowding-out effect. Analyze this effect for a closed and open economy. Usingnecessary graphs, compare these two different cases.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.
- An open economy with a government sector is in equilibrium. Assume the following: Marginal propensity to save = 0.4 Marginal propensity to tax = 0.2 Marginal propensity to import = 0.2Showing your method of working, calculate by how much the equilibrium level of national income would fall, if injections in the economy are reduced by $60m.part 4 5 6 neede d i need this in word not handwritten Q7. Assume that in 2015, the following prevails in the Republic of Nurd: Y = $200 G = $0 C = $160 T = $0 S = $40 I (planned) = $30 Assume that households consume 80 percent of their in- come, they save 20 percent of their income, MPC = 0.8, and MPS = 0.2. That is, C = 0.8Yd and S = 0.2Yd. Is the economy of Nurd in equilibrium? What is Nurd’s equilibrium level of income? What is likely to happen in the coming months if the government takes no action? 2. If $200 is the “full-employment” level of Y, what fiscal policy might the government follow if its goal is full employment? 3. If the full-employment level of Y is $250, what fiscal policy might the government follow? 4. Suppose Y = $200, C = $160, S = $40, and I = $40. Is Nurd’s economy in equilibrium? 5. Starting with the situation in part d, suppose the government starts spending $30 each year with no taxation and continues to spend $30 every period. If I…There is recently an increase in private saving in Canada. Assume this occured by a drop in autonomous consumption. What happens to a. investment? up, down, stay the same b. national savings? up, down, stay the same c. public savings? up, down, stay the same
- The following information is provided about an open economy with a government. Use theinformation to answer the questions that follow:C = 450 + 0.4YI = 350G = 150X = 70Z = 35 + 0.1YT = 0.15YYf = 1550Q.2.1 Calculate the level of autonomous spending in this economy. (2)Q.2.2 Calculate the size of the multiplier(Note: Round your answer to two decimal places)(4)Q.2.3 Calculate the equilibrium level of income(Hint: use the multiplier method)(2)20 2020© The Independent Institute of Education (Pty) Ltd 2020Page 7 of 10Q.2.4 Calculate the tax revenue to the government of this country when the economyremains in equilibrium.(2)Q.2.5 Calculate what the new equilibrium income should be if the government of thiscountry decides to cancel all taxes, implying the tax rate would now be 0%.(6)Q.2.6 Before the government decreased the tax rate, how much of governmentspending was required to bring the economy to full employment?(4)The table contains information about the nation of Syldavia. There are no income taxes or imports in this nation. Real GDP, Y (billions of 2012 dollars) Consumption expenditure, C (billions of 2012 dollars) Investment, I (billions of 2012 dollars) Government expenditure, G (billions of 2012 dollars) 15 6 5 5 20 10 5 5 25 14 5 5 30 18 5 5 35 22 5 5 The marginal propensity to consume in Syldavia is equal to A. 0.40. B. 5.00. C. 0.80. D. 0.75. E. 0.20.2In a country where the consumption function is C= 100+0.75Y, the planned investments are 100 units. If the planned investments are increased from 100 units to 200 units, how much will the balance output level change? Please select one: a. 200 b. 100 c. 250 d. 400 e. 50