1. Using excel, find the equilibrium consumption. 2. Show the range of income at which saving is negative and the range of income at which saving is positive. 3. Using excel, find the equilibrium expenditure.
Q: (а) You are given the following information. Consumption (C) = 400 + 0.8Yd Government Expenditure…
A: Equilibrium takes place where AE = Y
Q: 1 The following table shows income and consumption: Calculate: A- Saving (S), B- Marginal…
A: Given Y C 1000 1500 2000 2600 3600 3000 4800 3900 5500 4200 6200 4800
Q: Lily's disposable income increases by RM1,000, and she spends RM600 of it. Lily's O MPS is 0.4 and…
A: Marginal propensity to consume (MPC) refers to the proportion of extra income that a person spends…
Q: 6. The marginal propensity to consume is: A) the change in consumption divided by the change in…
A: Marginal Propensity to Consume is used to measure the spending on consumption for every additional…
Q: The consumption schedule relates: O consumption to saving. O disposable income to domestic income. O…
A: Consumption schedule is a table that shows the relationship between Y(Income) and Consumption…
Q: Question 9 Alice's disposable income increases by $1,000, and she spends $600 of it. Alice's: O MPS…
A: Answer: Option A (MPS is 0.4 and she saves $400) Explanation: MPS (marginal propensity to save): MPS…
Q: 24. If $1,000 of additional spending occurs and the marginal propensity to consume is 0.8, the total…
A: The marginal propensity to consume is a metric that quantifies induced consumption, the concept that…
Q: 1. The marginal propensity to consume is: A) the change in consumption divided by the change in…
A: Marginal Propensity to Consume is the proportion of the additional income that consumer spend on…
Q: Smith consumes all his income. Draw his consumption and saving schedule.
A: Consumption and saving The use of products and the services by households is referred to as…
Q: Explain the difference between induced consumption expenditure and autonomous consumption…
A: Hi, since you have asked multiple questions we will answer the 1st one for you. a) The difference…
Q: 2. The marginal propensity to save is 0.15, the marginal propensity to consume: (A) is 1.15. (B) is…
A: The marginal propensity to save is the proportion of an increase in income that is not spent but…
Q: (12) When the consumption function lies above the 45-degree line, households (a)…
A: The point of intersection of consumption and 45 degree line states that savings is zero.
Q: Q-1 The following table shows income and consumption: Calculate: A- Saving (S), B- Marginal…
A: Saving is the amount left of the income after consumption. The MPC or marginal propensity to consume…
Q: When the consumption function lies above the 45-degree line, households * O Spend on consumption an…
A: The theory that shows the relationship between the spending of the consumer and the different…
Q: 6. From the model above, the equilibrium consumption spending is a. 1,6150. b. 17,950. c. 18,150. d.…
A: here we calculating the spending by calculating the equilibrium income which are as follow-
Q: 25 1 Calculate the equilibrium level of investment if you have the following equations: C=0.4Yd+20,…
A: C = 0.4Yd + 20 National Income (Y) = 1000 Government Expenditure (G) = 200 Tax (T) = 50
Q: 1.3 A Country has following data Consumption Function = 90+0.75Y, Investment = 20 Billion Determine:…
A: here we calculate the following terms by using the given consumption function so the calculation of…
Q: Find the value of change in investment if the value of multiplier is 5 and the change in national…
A: The information being given is as follows:- MULTIPLIER = 5 Change in national income = $1000 million…
Q: When the consumption function lies above the 45-degree line, households * O Spend on consumption an…
A: Aggregate demand refers to the demand of final goods and services by all sectors in the economy. It…
Q: Find the value of change in income if change in investment is $200 and Multiplier is 6
A: The information being given is:- Change in investment = $200 Multiplier = 6 Change in income = ?
Q: The government raises taxes by $100 billion. If the marg nal propensity to consume is 0.8. What…
A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Suppose that the linear equation for consumption in a hypothetical eoonomy is: C-60+0.8Y. Also…
A: Consumption is the part of income that the consumer spends on buying goods and services. Saving is…
Q: uestion 1: In an economy C = 350 + 0.75 Y is the consumption function where C is consumption…
A: We measure the output of an economy using the gross domestic product. GDP or the gross domestic…
Q: The difference between planned and unplanned spending is O Always negative O Inventories Unplanned…
A: Goods and materials which are held by a business in order to sell in the market for earning profits…
Q: 1. If the consumption function in an economy as follows C = 50 + 0.75Y and the following variables…
A: 1) Given Consumption (C) = 50 + 0.75Y Investment(I) = 250 MD Government expenditure(G) = 200MJD,…
Q: 1) Consider the following economy: Č = 3,1 = 1.5, Ğ = 2.65,T = 2,f = 0.5, d = 0.1,a 0.8 %D %3D %3D…
A: 1) It is given that, Autonomous consumption = 3 Induced investment =1.5 Government expenditure =…
Q: 14. Find the equilibrium level of GDP in an economy in which investment is always 200 and the…
A: Aggregate expenditure is the sum of consumption function and the investment function.
Q: 1. Multiplier = 2. Equilibrium Income = 3. Saving at equilibrium = %3D %3D
A: C=400+0.8Yd Ip=200 G=400 X=400 T=50+0.2Y M=50
Q: Quèstion 4 "As disposable income increases, consumption:" O And saving both increase. Decreases and…
A: Disposable income refers to the proportion of income of an individual that is left in hand, after…
Q: 38. An economy is in equilibrium. From the following data about an economy, calculate autonomous…
A: Autonomous consumption refers that it is the consumption which is done by a consumer even when they…
Q: elaborate 3 determinants in which consumption can be increased according to the consumption function
A: Determinants of consumption which leads to rise in consumption of an individual are as follows :
Q: 3. The consumption function Suppose that national income in a country is $300 billion, taxes paid by…
A: Given Income Y=$300 billion Taxes T=$100 billion Household consumption C=160 MPC= 0.6 We have to…
Q: Find the consumption and the saving for this economy. 3- Illustrate by graph the consumption…
A: For finding the consumption, we need to put different values of income in the given consumption…
Q: 3. For the following problem, assume that the MPC, b, takes into account how much consumers spend as…
A: The aggregate demand is the total demand of all the goods and services. The aggregate demand is the…
Q: Consumption function for a country; Let C = 100 + 0.75Y. Planned investments 1 = 200. In this case…
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: 3. For a closed economy, the following data is given: 50 + 0.8Y, Consumption C %3D Investment I 70…
A:
Q: Q-1 The following table shows income and consumption: Calculate: A- Saving (S), B- Marginal…
A:
Q: 4. Given the following information: C = 10,000 + 0.60Yd Ip = 110,000 G = 60,000 M = 20,000 %3D %3D…
A: In Keynesian economics, the aggregate expenditure determines the employment and income level in the…
Q: Households change their spending by $10 billion due to a decrease in net wealth. The country's…
A: The spending multiplier is the ratio of the change in GDP to the change in autonomous expenditure.
Q: a=$250b, I=$500b, G= $350b, MPC=80%; Calculate: the multiplier the equilibrium level of income
A: The multiplier value depends on the value of the marginal propensity to consume. Higher the MPC,…
Q: 2. List four factors that could shift the consumption schedule except disposable income. Shifts in…
A: Disposable income: After deducting taxes and social security levies, the remaining income is ready…
Q: Math It Graph It Write It Consumption and Savings Functions Disposable Income Consumption Saving -50…
A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…
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- Given that national income is 80 crores and consumption expenditure 64 crores, find out the average propensity to save. When income rises to 100 crores and consumption expenditure to 78 crores. What will be the average propensity to consume and the marginal propensity to consume? Typed and correct answer please. I will rate accordingly.A country’s GDP is defined by the following equation: GDP = Consumer Spending + Investmentspending. The economy of this country is closed and there’s no government. Investment spendingis defined by the following equation: Investment Spending = Investment (planned) + Investment(unplanned). Investment (planned) is fixed at 350. Consumer spending is defined by thefollowing equation: Consumer spending = 200 + 0.55 (GDP). And for this country, PlannedExpenditure = Consumer Spending + Investment Planned. Based on this information, attempt thefollowing questions:a. “Investment (unplanned) will be negative if GDP is 900” – showing work, test theauthenticity of this statement. b. How do you think GDP (and production) will change if the income of this country is 1500?Explain by deriving Investment (unplanned) for an income of 1500. c. Derive the GDP for which Planned Expenditure = GDP. d. Supposed Investment (planned) was increased to 450. How will income-expenditureequilibrium change. e. Relate…In Eiffel Land, the autonomous consumption is 2000, the mpc is 0.6, net taxes are 200, planned investment is 5000, government spending is 2500 and net exports are 300. What is the planned aggregate expenditure of the economy? Question 20 options: 1) 1880 + 0.6Y 2) 9680+0.6Y 3) 9680+0.4Y 4) 9800+0.6Y
- National income accounting (GDP calculate) is an essential part of macroeconomics. Analyse the following hypothetical economy and answer the questions that follow: G = 400, I = 70, X = 300, M =100, autonomous consumption = 100, MPC = 0.6, taxes=50 Calculate the level of national income in this economy What percentage of disposable income do people save? Calculate the level of savings Show that in this economy, injections are indeed equal to withdrawals Calculate the multiplier? Using the multiplier in v above, what would be the new level of national income if government spending rose to 500?Please calculate level of GDP in equilibrium, consumption and savings level if you know that: I (investment) = 300 Ca (Autonomous Consumption) = 100 MPS (Marginal Propensity to Save) = 0,1 G (Government Expenditures) = 300 T (net taxe rate) = 0,2Question:Given that the marginal propensity to consume in a fully employed closed economy is 0.75, an increase in government expenditure of $1,000 million will increase the national income by:a. $0b. $750c. $4,000d. $7,500e. $8,000
- Table 2 shows elements in the national income accounts of an economy. Assume the economy is currently in equilibrium. Elements £ billions Consumption (total) 80 Investment 9 Government Expenditure 6 Imports 15 Exports 8 What is the current equilibrium level of income? What is the level of injections? What is the level of withdrawals? If national income now rises by £22 billion and as a result, the consumption of domestically produced goods rises to £80 billion. Calculate the marginal propensity to consume (MPC)What is the value of the multiplier? What is the value of the multiplier? Comment on the results in part (3) and (4).a. Fill in the missing numbers in the table. b. What is the break-even level of income in the table? What is the term that economist use for the saving situation shown at the $240 level income? c. For each of the following items, indicate whether the value in the table is either constant or variable as income changes: the MPS, the APC, the MPC, the APS. Level of Output and Income (GDP=DI) Consumption Savings APC APS MPC MPS $240 $ $-4 $260 $0 $280 $4 $300 $8 $320 $12 $340 $16 $360 $20 $380 $24 $400 $28Assume 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=I
- if investment is $0.5 trillion, government spending is $1 trillion, and next exports are -$0.5 trillion, the equilibrium GDP is:Consider a 4-sector economy, the consumption spending is C = 500+0.75(Y-T), taxes are T = 10 + 0.2Y, and imports are M=0.2Y. Planned investment is Ip=300, government spending is G=250, and exports are X=10. What is the slope of the planned aggregate expenditure (PAE) line? a) 0.7 b) 0.5 c) 0.6 d) 0.3 e) 0.4Let's say the autonomous Investment = $5,000, autonomous consumption = $12000, autonomous government expenditures = $3,000, autonomous net exports = - $2,000, and the mpe = .6. Now there is a banking crisis, and Investment drops $2,500. What is equilibrium GDP? Question 8 options: $15,500 $33,500 $48,750 $38,750 2