(а) You are given the following information. Consumption (C) = 400 + 0.8Yd Government Expenditure (G) = 200 million Investment (I) = 30 million %3D Taxation (T) = 10 million į. State the equation of the savings function. ii. Calculate the national income equilibrium. iii. If full employment income RM 3000 million, what problem is this country facing? Show this situation in a well labelled diagram.
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- Assume that a three-sector economy in Country W. The amount of autonomous consumption is RM300 million with the proportion of an increase in income that is spent on consumption is 0.5. An induced tax of 20% is imposed by the country. The amount of investment is RM250 million, and the amount of government spending is RM150 million. A) explain what would happen to the national income equilibrium if the invesment changes by rm100 million3. The national consumption function of a country is C = 400 + 0.8Yd. The government only provides transfer payments of 100, without ever collecting taxes from its citizens. If the national income of the country is 1000. Determine: a. Consumption and savings of the people of the country. b. Disposable income for the people of the country. Please solve subparts a and b thank uAssume that the consumption function for the above economy is C = 1000 + .75Yd fill in the empty cells. (All Figures are in Billions of Dollars) Output Taxes Disposable Income Consumption Spending Saving Investment Government Aggregate Expenditure 5000 1000 750 750 7000 1000 750 750 9000 1000 750 750
- Problem 1 Given the following for a closed economy I=3400 planned investment G=4000 Government spending C=3,800 +0.8 Yd consumption function T=1000 taxes Refer to problem 1. The AE function is equal to A)AE=10400+0.8Y B)AE=11200+0.8Y C)AE=7800+0.8Y D)A and B are correct Refer to problem 1. What is the equillibrium level of income? A) Y=$19000 B)Y=$56000 C) Y=52,000 D)Y=25,000 Refer to problem 1. At equillibrium Saving is equal to A)$6040 B)$7200 C)$6400 D)$7650 Refer to problem 1.If autonomous consumption decreases by $1000.the new equillibrium level of income will be equal to A)$5000 B)-5000 C)$47000 D)$37000 Refer to problem 1. If potential GDP is 20000 by how much should government expenditure change to reach full employment $-6400 $40000 $100,000 $-32,000National Income: Where It Comes From and Where It Goes — End of Chapter Problem If consumption depends on the interest rate, saving will also depend on it. In particular, the higher the interest rate, the greater will be the return to saving. Hence, the supply of loanable funds will be represented by an upward-sloping, rather than a vertical, curve. National saving is the sum of public saving and private saving. Investment in this analysis is private investment. It does not include public investment.Given the following consumption function, C = 400 + 0.75YD,where C= consumption expenditure, YD = disposable income, Investment= $1200, Government spending = $1600,Exports = $500, Imports = $600, Taxes = $1200 and Potential GDP = $9000Choose corrcct optiona) Aactual output is less than potential outputb) actual output is zeroc) actual output is equal to potential outputd) actual output is higher than potential output
- Assume that a three-sector economy in Country W. The amount of autonomous consumption is RM300 million with the proportion of an increase in income that is spent on consumption is 0.5. An induced tax of 20% is imposed by the country. The amount of investment is RM250 million, and the amount of government spending is RM150 million. (iii) Explain what would happen to the national income equilibrium if the investment changes by RM100 million.(a) Assume that Gross Domestic Product (GDP)/Total output (Y) is 6,000. Consumption (C) is given by the equation C = 600 + 0.6(Y – T) where T is the tax. Investment (I) is given by the equation I = 2,000 – 100r, where r is the real rate of interest, in percent. Taxes (T) are 500, and government spending (G) is also 500. What are the equilibrium values of C, I, and r?don't use Al bot or chat GPT otherwise downvote.correct answer will get instant upvote show calculation Suppose the consumption factor is C= $100 + .8Y, initial national income Y + $800, and intended investment equals $20. The equilibrium level of national income is equal to. a) $600 b) $800 c) $700 d) $740 e) $760 give correct option with explanation and explain why others option are wrong .
- Assume that the consumption function for the above economy is C = 1000 + .75Yd fill in the empty cells. (All Figures are in Billions of Dollars) (3 Points) Output Taxes Disposable Income Consumption Spending Saving Investment Government Aggregate Expenditure 5000 1000 750 750 7000 1000 750 750 9000 1000 750 7505. The economy of a country is a three-sector economy. Its public consumption follows the function: C 400+ 0.8Yd. Realized investment reached IDR 250 trillion, government spending amounted to IDR 700 trillion, transfer payments to the public amounted to IDR 100 trillion and tax revenues amounted to IDR 300 trillion. Determine: a. Equilibrium national income b. Balance consumption c. Savings balance Please solve subparts a,b,c thank uAssume that a three-sector economy in Country W. The amount of autonomous consumption is RM300 million with the proportion of an increase in income that is spent on consumption is 05. An induced tax of 20% is imposed by the country. The amount of investment is RM250 million, and the amount of government spending is RM150 million. A) calculate the national income equilibrium.