7. The following facts apply to a small, imaginary econormy. Consumption spending is $6,720 when income is $8,000 Consumption spending is $7,040 when income is $8,750 The fiscal multiplier for this economy is a. 131 b. 0.64 c. 278 d. 175
Q: Question 44 If a $35 billion increase in government expenditures increases equilibrium GDP by $175…
A: Change in GDP id $175 billion due to change in $35 billion government expenditure.
Q: The spending multiplier, m, is V - MPC). af the MPC is 0.9, what is the spending muitiplier? bị Now…
A:
Q: 2. Given: C = 250 + 0.8 Y I = 150 G = 300 TR = 100 NX = 100 t =0.25 i)Find the equilibrium level of…
A: Hey, Thank you for the question. According to our policy, we can only answer 3 subparts per…
Q: Automous consumption =100m Investment spending =100m Government spending 200milion…
A: please find the answer below.
Q: 1. Using the following information: C = 200 + 0.9Yd | = 250 G = 100 T= 100 Ya = Y-T, is disposable…
A: Given C=200+0.9Yd ........... (1) I=250 G=100 and T=100 Where C represents consumption…
Q: The spending multiplier, m, is 1/1 - MPC). a) ir the MPC is 0.9. what is the spending multiplier? b)…
A: Spending multiplier means how changes in spending lead to multiple times change in output or income…
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A: Multiplier shows the proportion of change in a variable due to change in related variables. The…
Q: e figure above: - Find the equilibrium GDP. What happens to the left of that equilibrium? What…
A: The equilibrium condition: Y = C+I+G.
Q: Instructions: In the table, enter your answers as a whole number. Round your answers for the MPC and…
A: a) MPC = ∆C/∆Y From the given table, ∆C = 80 ∆Y = 100 Hence MPC (c) = 80/100 = 0.8
Q: 5. Explain the effects of the following actions on equilibrium income, assuming that the marginal…
A: The multiplier effect states that a change in income is a multiple of a change in expenditure.…
Q: The following graph shows the planned expenditure line (AE) for an economy where current equilibrium…
A: Equilibrium income = $400 Full employment income = $650
Q: Use the following information on economy X to answer the questions below. Consumption function: C =…
A: since you have asked a multipart question and according to our policy we can only solve the first 3…
Q: 1. Using the above information, what is the MPC and MPS when the DI is 3000? MPC = MPS = 2. What…
A: here we can find the MPC and MPS and the change in income by using the disposable income which are…
Q: If Guy Barnes receives $1,000 from his newly created government job and gives $900 to Jingles…
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Q: 3. Given the following information, S=-200 +0.3Y 1100 a. Calculate the national income equilibrium…
A: Answer: Given, S=-200+0.3YI=100 (a). The equilibrium in the leakage-injection approach exists where…
Q: 2. Given: C = 250 + 0.8 Y I = 150 G = 300 TR = 100 NX = 100 t =0.25 i) Find the equilibrium level…
A: Hi, Thank you for the question. According to our policy, we can only answer up to 3 sub-parts per…
Q: Using the aggregate expenditures model, answer the questions below to show how government fiscal…
A: Full employment level refers to the total output produced by the economy with the given amount of…
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Q: A) 200 B) 100 C) 500 D) 300 Answer: D Diff: 2 Topic: Fiscal Policy at Work: Multiplier Effects…
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A: In the mentioned chart we have to calculate the MPS, MPC, and data among them anyone is given. Also,…
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A: Government spending refers to money spent by the public sector on the acquisition of goods and…
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A: We have given following information I = 100, G = 200, Ca = 100, Xn = -100 MPC = 4/5 = 0.8 and…
Q: 14. If MPC is 0.6 and government spending increases by 350, how much does gross domestic product…
A: The marginal propensity to consume (MPC) is described as the percentage of an increase in pay that a…
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A: Here, it is given that the marginal propensity to consume of an economy is 0.67, which implies that…
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Q: the following information on economy X to answer the questions below. Consumption function: C = 250…
A: Given that, Consumption function: C = 250 + 0.8YInvestment spending: I = 150Government spending: G =…
Q: 5. If the multiplier is 5 and investment increases by $3 billion, equilibrium real GDP will increase…
A: Hi! thankyou for the question but as per the guidelines, we answer one question at one time. Kindly…
Q: YAS = 742 + 15P - 28 Poil YAD = = 478 - 45P+ 18G Suppose initially, the Poil = $93 per barrel and…
A: Answer - "Thank you for submitting the question. But, we are authorized to solve only 3 subparts.…
Q: Use the following information on economy X to answer the questions below. Consumption function: C =…
A:
Q: 1. Suppose an economy is represented by the following equations. Consumption function C = 100 +…
A: The equilibrium level of income arises when the actual output is equal to the planned aggregate…
Q: Given: C = 250 + 0.8 Y I = 150 G = 300 TR = 100 NX = 100 t =0.25 i) Find the equilibrium level of…
A: Hi, Thank you for the question. According to our policy, we can only answer up to 3 sub-parts per…
Q: Mathematically prove that balanced budget multiplier is one. Interpret it
A: Answer to the question is as follows:
Q: The spending multiplier, m, is 1/(1 MPC). a) If the MPC is 0.9. what is the spending multiplier? b)…
A: Spending multiplier show the circulation of money how much time occurs in economy so here we can…
Q: c) Given the following economic models Y=C+I+G+ X-M C=1000+0.2YD- T=30+0.4Y I=100+ 0.15Y G = 40 X =…
A: NOTE: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: QUESTION5 Given the following data, solve for equilibrium national income Y: • C = $200 + 0.9375Y •…
A: In the equilibrium Y = C + I +G Also multiplier shows the how much autonomous spending change due to…
Q: Consider an economy in which the marginal propensity to consume is 0.8 and GDP is currently at…
A: Given; Marginal Propensity to Consume= 0.8 Current GDP= 12000 Tax multiplier=-MPC1-MPCGovernment…
Q: 4. In the US the unemployment rate for January 2000 was 4.0%. In January 2000, the US had GDP of…
A: Answer to the three sub parts are as follows:
Q: a. The following information is a three sector economy of a Consumption function (C) = 310 +…
A: Consumption: It refers to the consumption of goods and services in an economy. More consumption will…
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- Explain the difference between the government purchases multiplier and the net tax multiplier. If the MPC falls, what happens to the tax multiplier?9)Calculate how much output would expand by if the government increased spending by $500 billion and financed this spending by increasing lump-sum taxes by the same amount.3@ An economy has neither imports nor income taxes. The MPC is 0.75 and the real GDP is $120 billion. The government increases expenditures by $4 billion. The multiplier is _____ and the change in real GDP from the increase in government expenditures is _____ billion.
- # 5 Is the expenditure multiplier under income-dependent net taxes bigger or smaller than the multiplier under autonomous net taxes? Explain your answer.1) Assume that Canadian government taxes away $0.15 of each dollar of new income, that 35% of the remaining $0.85 of disposable income is spent on imports, and that 2% of disposable income is saved. Enter your responses below rounded to 2 decimal places. a. The marginal propensity to withdraw is . b. From each new dollar of income $ is spent on domestic consumption items.c. The value of the Canadian spending multiplier is . 2) In each case below a particular fiscal policy affects an economy's AD curve via the spending multiplier. Calculate the spending multiplier and find the direction and size of the shift in the AD curve. Enter your responses for the spending multiplier rounded to 2 decimal places, and size of the shift of the AD curve rounded to 1 decimal place. Do not put minus signs in your answers. a. If government purchases increase by $3 billion in an economy with an MPW of 0.65 then the spending multiplier is and the AD curve finally shifts to the by $…Given thatG= 201= 35C = 0.9Ya + 70T= 0.2Y + 25Where, G, I, C, T and Ya are planned government expenditure and planned investment autonomous andconsumption expenditure and tax respectively.Calculate the equilibrium level of national income.
- Refer to Table 24.6. The value of the government spending multiplier A. is 10. B. is 5. C. is 0.9. D. cannot be determined from the available information.C = 480 + 0.5YDI = 110T = 70G = 250 a. Calculate the private savings, public savings, and investment spending.b. Calculate the multiplier and explain how it affects equilibrium output.c. Suppose that the government decides to increase its spending from €250 billion to €300 billion. Find the equilibriumoutput, consumption, and disposable income. Why wouldthe government decide to expand fiscal spending?Mexico's real GDP fell from 4.5 trillion pesos to 3.8 trillion pesos over the first part of 2020. In that same time, its consumer spending fell from 3.1 trillion pesos to 2.5 trillion pesos. Assume that real GDP represents disposable income. Using these values, what is the size of the government spending multiplier?
- Only typed answer Explain why the multiplier falls when taxes depend on income. .1 Assume the following for the economy of a country: a. Consumption function: C = 60 + 0.75Yd b. Investment: I = 75 c. Government spending: G = 45 d. Net taxes: T = - 25 + 0.2Y e. Disposable income: Yd. = Y - T f. Equilibrium: Y = C + I + G Solve for equilibrium income. How much does the government collect in net taxes when the economy is in equilibrium? What is the government’s budget deficit or surplus?14 If government spending and taxes both change by the same amount, how much must they change to eliminate the recessionary gap? 15. Suppose the MPC is .90 and the MPI is .10. If govern- ment expenditures go up $100 billion while taxes fallSuppose an initial increase in government spending (G) increased GDP by $50,000. If he simple spending multiplier is 2.5, the size of the initial government spending was
