25 1 Calculate the equilibrium level of investment if you have the following equations: C=0.4Yd+20, national income is 1000, government expenditures is 200, tax is 50 Investment =300 O Investment=350 O Investment-D400 O Investment-D450 O None of the above O

25 1 Calculate the equilibrium level of investment if you have the following equations: C=0.4Yd+20, national income is 1000, government expenditures is 200, tax is 50 Investment =300 O Investment=350 O Investment-D400 O Investment-D450 O None of the above O

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter9: Aggregate Demand

Section: Chapter Questions

Problem 3.7P

See similar textbooks

Related questions

Q: (а) You are given the following information. Consumption (C) = 400 + 0.8Yd Government Expenditure…

A: Equilibrium takes place where AE = Y

Q: Disposable Consumption Savings Income 100…

A: Marginal propensity to consume is given by the ratio of change in consumption to change in income.…

Q: Monica's current income went up from $100.000 to $105,000 and she increased her current

A: Given that, Monica's current income went up from $100,000 to $105,000 Her change in income =…

Q: 1. Given the following table. Income (RM million) Consumption (RM million 100 100 150 200 200 300…

A: The provided table is: Income (RM million) Consumption (RM million) 0 100 100 150 200 200…

Q: 53. Consider an economy described by the following parameters: C=1000+0.8(Y -T) Government…

A: The consumption function = c+ b(Y-T) where, b = slope(MPC)

Q: QUESTION 21 Refer to the information provided in Figure 8.9 below to answer the questions that…

A: Aggregate expenditure is the sum of all expenditures made by individuals, firms and government…

Q: 19. Complete the table below disposable consumption Income 1000 Year saving MPC MPS 2018 350 NA NA…

A: Disposable income is the income of the people after paying for all the taxes and deductions. It is…

Q: Disposable income Consumption 200 205 225 225 250 245 275 265 300 285 Refer to the given data. The…

A: The marginal propensity to consume (MPC) is a measure that basically shows how much consumption of a…

Q: un economy is currently in equilibrium. The following figures refer to elements in its ational…

A: National income is the market value of all goods and services produced in the economy in a given…

Q: 5. Consider the following is the economy of Country Z: C = 200 + 0.85Y I = 100 Answer the following…

A: The provided information are: C=200+0.85YI=100

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: 10. Suppose the consumption equation is represented by the following: C 250 + .75YD. Now assume…

A: Government spending is one of the components of aggregate demand along with consumption spending,…

Q: a. Calculate the missing values in the table below given that the Aggregate Consumption Function for…

A: In Keynesian macroeconomics theory, aggregate demand plays a very important role because in…

Q: Autonomous consumption = R100m Investment spending = R300m Government spending = R200 million…

A: please find below the answer.

Q: Assume in a simple economy that the level of saving is -500 when aggregate output equals zero and…

A: The MPC is the marginal propensity to consume, which describes the level of income spent on…

Q: Study the scenario and complete the question(s) that follow(s):SilesiaYou are provided with the…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Consider the circular flow of expenditure and income in the Canadian economy. Which of the following…

A: The circular flow of income and expenditure basically refers to the mechanism through which an…

Q: . If the consumption function in an economy as follows C = 50 + 0.75Y and the following variables…

A: Given information: C = 50 + 0.75Y investment = 250 MJD Government expenditure = 200MJD Net…

Q: Given the following table. Income (RM million) Consumption (RM million) 0 100 100 150 200…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: 17. Consider the following macroeconomic mode Time C= 200 + 0.8Y GI (Gross Investment)= 200 GP…

A: In an economy, the macroeconomic equilibrium is established at a level of real GDP where the…

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: . What will be the level of consumption spending at an income level of 36? a) 30 b) 24 c) 28 d) 16…

A: The answer will be considered through graph:

Q: The table below provides income and consumption data in billions of dollars: Disposable Income…

A: Answer: Given, Disposable income Consumption 100 80 200 150 When the income rises from 100…

Q: The table below provides income and consumption data in billions of dollars: Disposable Income…

A: When the income is $100 the consumption is $80 which is 0.8% of the total disposable income and the…

Q: elow are the information of four sector economy. All values are in RM billon. The saving function…

A: Saving function : S = -200 + 0.15 Yd Investment : I = 500 Government spending : G = 300 Tax : T…

Q: Assume the following information for an economy: Natural level of output = $190b…

A: An economy reaches equilibrium when the autonomous expenditure is equal to the level of output.

Q: Classify each of the following items as a final good or service or an intermediate good or service,…

A: The items that are being used for providing utility and satisfaction of human wants are known as…

Q: The equations below show some macroeconomic information for the economy of Nightwing. All autonomous…

A: Given: C=94+0.90Y0T=26+0.13YI=140G=198.5XN=120-0.19Y

Q: Given the data shown in the table below, if planned investment increased by $100, the new…

A: GDP is the value of all final goods and services produced in an economy over a given period of time.…

Q: Explain two effect of public expenditure on the investment??

A: The economics as a study is associated with the use of limited resources, where the economies have…

Q: Quèstion 14 Refer to the Table for a private closed economy and match the correct answer. Domesti c…

A: Please find the attached answer of both the questions below-

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: Study the scenario and complete the question(s) that follow(s): Silesia You are provided with the…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: An economy has a consumption function: C = 400 + .9DI Investment is 1,000. Government purchases are…

A: here we calculate the equilibrium level of output and choose the correct option which are as follow-

Q: A firm spends an additional £150 million on investment projects in 2012. How will this impact the…

A: Gross Domestic Product (GDP) refers to the value of final goods and services produced within the…

Q: ind the equilibrium level of GDP (income or V) demanded in an economy in which investment (1) is…

A: The economics as a study is based upon the idea that the economies, or the societies around the…

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. Suppose that the economy can be described by the following equations: C = 400 + (8/9)*DI I= 300 G…

A: Disposable income = Y-T [a] C = 400 + (8/9)*DI I = 300 G = 800 T = (1/2)*Y (X-M) = 0 Y = C + I + G +…

Q: If the actual level of income is 18, what would be the resulting unplanned inventory investment? a)…

A: The Keynesian cross diagram is used to determine the equilibrium level of income or real gross…

Q: Given

A: Given that , Consumption expenditure C= 50 + 0.7 ( Y - T ) Investment expenditure I = 100…

Q: 4.5 You are given the following data concerning Freedonia, a legendary country: (1) Consumption…

A: At market equilibrium condition AD = AS where AE or AD = C+I and Y = C+S because income is used for…

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: Complete the following table:a. Show the consumption and saving schedules graphically.b. Find the…

A: Average propensity to save shows the ratio of saving to income. Average propensity to consume shows…

Q: 3. If the current equilibrium GDP value is $925,000 and investment spending decreases by $25,000…

A: Here we calculate the new equilibrium GDP by calculating the multiplier , so the calculation of 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…

Question

25 1
Calculate the equilibrium level of investment if you have the following equations: C=0.4Yd+20, national income is 1000, government
expenditures is 200, tax is 50
Investment =300 O
Investment-D350 O
Investment3D400 O
Investment3D450 O
None of the above O

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Consider the following NIPA data for 1Q2021 (First Quarter 20210 $ billlion) Investment: Non Residential $2,948.3 Exports $2,305.3 PCE Goods $5,183.5 Investment: Residential $1,043.7 Government Expendiures Federal $1,557.0 PCE Services $9,857.7 Imports $3,152.3 Governemnt Expenditures : State and local Goernent Expenditures $2,395.9 Change in private inventories -$90.1 2a. Compute the weights of each of PCE, GPDI, NX and GOV) in GDP 2b. Consider the following rates of change (%) for each of the above items. % change PCE 10.70% GPDI -5.00% NX -6.80% GOV 6.30%
Assume an economy can be modeled with these equations: C = 210 + b Yd, I = 200, G = 103 - 0.054 Y, X = 280 M = 305 and T = -40 + 0.29Y. What is the value of b when the multiplier on Investment is 1.867? the answer is 0.73
2. Public consumption of a country (two sectors) is indicated by the function C = 60 + 0.4Y. Calculate:a. Find the saving function.b. If the investment that occurs is 300, determine the balance national income.c. What is the consumption of the people of the country if the national income is 400.d. How much is the savings of the people of the country if the national income is 400.e. Make a graphical sketch of the consumption and saving functions in one image. Please solve subparts d,e thank u
2. Public consumption of a country (two sectors) is indicated by the function C = 60 + 0.4Y. Calculate:a. Find the saving function.b. If the investment that occurs is 300, determine the balance national income.c. What is the consumption of the people of the country if the national income is 400.d. How much is the savings of the people of the country if the national income is 400.e. Make a graphical sketch of the consumption and saving functions in one image. Please solve sub parts a,b,c thank u
Below are the information of four sector economy. All values are in RM billon. The saving function [Fungsi tabungan] : S = -200 + 0.15 Yd Investment, [Pelaburan] : I = 500 Government spending [Perbelanjaan kerajaan] : G = 300 Tax [Cukai] : T =100 Export (X) : X=200 Import (M) : M=100 Based on the data above, calculate the: a. Find value of MPC. b. Derive the consumption function for the above economy c. Calculate the equilibrium level of national income using the AD-AS approach.
13. Taxes are reduced by $50 billion and income increases by $1,000 billion. The value of thetax multiplier is:(A) -4. (B) -20. (C) -10. (D) -5.
You are an economic advisor to the government. Discuss your opinion . a) How COVID-19 pandemic will affect the consumption behavior as well as the investment done by the firms and household for the next two years? b) What are the actions or policies that the government can implement to face this situation? please answers with analysis and --graph (if possible)
Please no written by hand solutions Data on before-tax income, taxes paid and consumption spending (on domestic goods and services) for the Simpson family in various years are given below. BEFORE-TAX INCOME ($) TAX PAID ($) CONSUMPTION SPENDING ($) 3000 3500 3700 4000 25 000 27 000 28 000 30 000 20 000 21 350 22 070 23 600 a. Graph the Simpsons's consumption function and find their household's marginal propensity to consume. b. How much would you expect the Simpsons to consume if their income was $32 000 and they paid taxes of $5000? c. Homer Simpson wins a lottery prize. As a result, the Simpson family increases its consumption by $1000 at each level of after-tax income. ('Income' does not include the prize money.) How does this change affect the graph of their consumption function? How does it affect their marginal propensity to consume?
Please see attachment Answer neatly Show all your work. Based on the above diagram: 1. Calculate MPC? 2. If Private Investment increases by 100, calculate the new level of NI. 3. If full-employment NI is at 3000, by how much should Government spending change? 4. What is the new NI, If 1/2 of those government expenditures are financed through taxes?
Assume a closed economy where the level of investment is 300 and savings function is s = -30+ 0.15y calculatr the equilibrium level of income
what is the equilibrium income in this IS-LM model? Y = C +I +GC = 200+0.8(Y-T )I = 1,600-100ｒ G =T = 1,000MS= 5,000 P =2MD/P= 0.5Y - 250ｒ +500 ➀ 5000 ➁ 6000 ➂ 7000 ➃ 8000 ➄ 10000 Please type out the correct answer ASAP within 40 min with proper explanation of the each option given. Will give you thumbs up only for the correct answer.
18. What will be the level of consumption spending at an income level of 36? a) 30 b) 24 c) 28 d) 16 e) 8