An economy saves 20 percent of any increase in income and there are no income taxes or imports. Then, an increase in investment of $2 billion leads to a short run increase in real GDP of * O $2 billion O $10 billion O $0.4 billion O $1.6 billion
Q: The economy of Westlandia in 2021: • Real GDPY= 400 • Consumption C = 300 • Planned investment (I) =…
A: Aggregate expenditure is the sum of consumption, investment, government spending and net exports in…
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A: In an economy, investment demand is the demand for capital or funds by the firms to make production…
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A: Durable goods are those consumer goods which do not wear out quickly and last a long time.…
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A: Disposable income: It is that portion of an individual’s overall income over which the recipient of…
Q: B CF 3 1 2 Disposable income (trillions of 2005 dollars) In the above figure, at a disposable income…
A: Disposable income, the part of the revenue of a person for which the receiver retains full control.…
Q: Suppose that there is no government and no international trade. When C + I (or AE)greater than the…
A: The aggregate expenditure is the sum of the consumption, government expenditure, planned investment,…
Q: Which of the following does NOT affect potential GDP? O A. the quantity of capital and human capital…
A: Here, option E is correct. Becuase potential GDP is defined as the maximum output which can be…
Q: Aggregate planned expenditure decreases if O a. investment increases. O b. real GDP decreases. O c.…
A: Aggregate planned expenditure is computed as:
Q: The table gives real GDP (Y) and its components in billions of dollars. If real GDP is $100 billion,…
A: If real GDP is $100 billion, aggregate planned expenditure is more than real GDP. Option b is…
Q: Pluto nation is an open economy with a gross domestic product of $2,000 million, government…
A: Answer; Option (c) $ 900 million is correct
Q: Refer to problem 2. The equilibrium level of real GDP is * O $2,500 O $2,400 O $2,300 O $2,200
A: The real GDP is said to be at equilibrium when the total amount of output produced in an economy is…
Q: Refer to Figure 3. The marginal propensity to consume equals * O 0.80 О 090 О 0.75 O 0.85
A: Marginal propensity to consume = Chnage in consumption / Change in income
Q: Assume consumption is represented by the following: C = $400 + 0.5Y. Also assume that planned…
A: Given information, Consumption: $400 + 0.5Y Investment: $100 To find: equilibrium level of income
Q: Question 43 Over the last 50 yearn, interent rates have risen before each recession and have fallen…
A: Note:- Since we can only answer one question at a time, we'll answer the first one. Please repost…
Q: What is the value of autonomous expenditure in the following macroeconomic model? C= 1,000 + 0.75Y…
A: The expenditure that tends to remain unaffected by income levels and are being held to be constant…
Q: In the income-expenditure model, if autonomous investment decreases by $10 billion, a. planned…
A: The income expenditure model shows the relationship between income and expenditure in an economy. It…
Q: The GDP of the U.S. in 2014 was around $17.4 trillion. This means Lütfen birini seçin: O A. that…
A: Gdp is the value of all the goods and services produced in an country during a particular period of…
Q: The table given below states the value of the Real GDP and the different components of aggregate…
A: Real GDP is the value of final goods and services produced in the economy within a given period of…
Q: QUESTION 1 Below is the data for an economy in the year 2016. Gross Domestic Product = $25,000…
A: Aggregate expenditure is the sum of consumption, investment, government spending and net exports.
Q: The reason(s) why real GDP grows, in the long run, is that Select one or more: O imports increase. O…
A: Gross domestic product refers to the economic tool to measure the national income of the people.
Q: LAST WORD What is Say's law? How does it relate to the view held by classical economists that the…
A: Answer: Given that: LAST WORD What is Say's law? How does it relate to the view held by classical…
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: In 2020 consumption (Ci) for selected countries was as follows Jordan 2.5 billion $, USA 100.12 $…
A: In the data those components are fixed which do not change and variable components change. Data is…
Q: If the MPC is 4/5, and policy makers decide to increase taxes by $250 billion in order to slow an…
A: Given: The MPC is = 4/5 The taxes hiked by = $250 billion To Find: The change in GDP:
Q: Use the table below to answer the following question: Component Value Consumption $16 Trillion…
A: At equilibrium, GDP = Consumption + investment + government purchases + exports - imports…
Q: If disposable income increases by $1 and consumption goes up by $0.80, we can conclude that... O a.…
A: Lord K.M.Keyes explains the relationship between consumption (C) and income (Y), it is known as the…
Q: If unplanned inventory investment is positive, then Select one: O a. planned aggregate expenditure…
A: Inventory investment is the value of the change in total inventories held in the economy during a…
Q: 1. Xanadu's desired national saving can be expressed as: O. Sd = 20 + 200r O. Sd = 10 + 200r O.…
A: Since You have posted Multiple question, as per guidelines we can solve only one at a time
Q: If GDP is currently $13 trillion and is growing at a rate of 4.1% per year, how long will it take…
A: When Real GDP increases from $ 13 trillion to $ 26 trillion, it gets doubled.
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A: In the Solow growth model, any change in technology and savings rate will have a significant impact…
Q: If there is a sharp increase in oil prices, in the short run. O. Consumption and investment will…
A: Oil price increment effects: When price of oil increases then it will lead to increase the overall…
Q: Which of the following statements are correct? Select one or more: O a. Government spending on goods…
A: GDP The Gross Domestic Product (GDP) basically refers to the sum of all the value added in a given…
Q: Instructions: In the table, enter your answers for consumption as a whole number. Round your answers…
A: The average propensity to consume (APC) is the fraction of income that is spent rather than saved.…
Q: If imports are €100 million less than exports, government purchases are €500 million, consumer…
A: Here given information is: Consumer spending (C)= €1 billion Investment spending (I)= €500 million…
Q: The United States produced approximately worth of goods and services in 2019. O A. $21 billion B.…
A: The real GDP of US in 2019 was 21.43 trillion
Q: Which one of the following is TRUE? Select one: O a. Our productive capacity declines when net…
A: Net Investment = Gross Investment ( money spent on capital assets) - Depreciation of those assets.
Q: Between 2014 and 2015, the exports of the U.S. economy decreased by $5 billion and its imports…
A: GDP is the sum total of the market value of all goods and services produced within the geographical…
Q: Statement A: As disposable income goes up, the APC falls but APS increases. Statement B: As…
A: Average propensity to consume(APC) indicates the part of income that is kept for consumption…
Q: From the following data, determine the equilibrium level of real GDP and the MPС. A $ 1,800; .33 В $…
A: The real GDP (Y) measures the monetary value of all final products and services that have been…
Q: Ceteris paribus, which of the scenarios below will unambiguously lead to an increase in real GDP? O…
A: GDP: It is the total of all values added to the economy.
Q: If the multiplier is 5 and investment increases by $3 billion, equilibrium real GDP will increase…
A: We are given, Multiplier = 5 Increase in investment = $3 billion To find, increase in equilibrium…
Q: If GNP is $600 billion, receipts of factor income from the rest of the world are $50 billion, and…
A: Answer Explanation GNP =600, Net factor income from the ROW =( Factor income from the ROW Factor…
Q: Potential GDP is O a. a measure of the short term fluctuations in real GDP. O b. another name for…
A: Answer to the question is as follows:
Q: An inflationary gap is the amount by which: O Equilibrium GDP falls short of the full-employment…
A: Definition of Inflationary gap it measures the difference between the current GDP and GDP with full…
Q: Which of the following is a sign that an economy is in poor health? a) a prolonged decline in total…
A: the correct option is a A prolonged decline in total output A prolonged decline in total output…
Q: Between 2017 and 2018, the exports of the X economy decreased by $5 billion and its imports…
A: The macroeconomic policy involves several components like the gross domestic product, consumption,…
Q: In an economy, autonomous consumption is $10. If Income is $90 and the mpc is 0.9, how much is…
A: Marginal propensity to consume refers to change in consumption with respect to change in income.…
Q: At the beginning of the year, your wealth is €10,000. During the year, you have an income of €90,000…
A: When talking about an individual's wealth, it is said that it is the total amount of assets held by…
Q: Suppose in an economy, saving = $430; investment = $215; government spending = $688; taxes = $192;…
A: please find the answer below.
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- explain ythis slide in regards to a green economy. i need about 1 minute to 2 minutes of information about this slide in presentation format03. If the economy is at point D, a) more can be produced of both X and Y, without an increase in resources or improvement in technology. b) to produce more of product Y, some of product X has to be sacrificed. c) the economy is not producing efficiently. d) the economy cannot reach this point without an increase in resources or improvement in technology. e) both (a) and (c) are correctQ-2: In the world, every economy faces the same fundamental economic challenges. In regards to this statement explain briefly what are these basic economics challenges/issues?
- . Explain ‘carrying-capacity’ of environment with examplesExplain The existence of an Economic problemConsider a frugal closed economy without money market. Assume there is no government or exports/imports. The economy is described by the following set of equations. C=1000+0.5⋅Y ID = 600 What is the equilibrium output Y* a)4000 b)2000 c)3200 d) 1600
- Based on your understanding, explain the importance of fiinance on the national and global economy.a) A concerted reduction in the total production level in oil markets.b) The implementation of a minimum wage.c) The implementation of subsidies to agricultural production in Australiad) The implementation of a Carbon tax in the resources exploitation sector. A Carbon taxis charged according to the level of emissions of greenhouse gases in an economy.e) The implementation of a new loan program to university students in the educationsectorThe 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.2.4 Calculate the tax revenue to the government of this country when the economyremains in equilibrium.