Answer the question on the basis of the following table for a particular country in which C is consumption expenditures, Ig is gross investment expenditures, G is government expenditures, X is exports, and M is imports. All figures are in billions of dollars. Each question is independent of other question using the same table, unless otherwise stated. Price Level 128 125 122 119 116 minus $2 billion. minus $4 billion. $2 billion. с $18 $20 $22 $24 $26 zero Ig $2 $4 $6 $8 $10 G $3 $3 $3 $3 $3 Refer to the table. If this nation's equilibrium price level is 125, its net exports will be: X $1 $2 $3 $4 $5 M $5 $4 $3 $2 $1 Real GDP

Answer the question on the basis of the following table for a particular country in which C is consumption expenditures, Ig is gross investment expenditures, G is government expenditures, X is exports, and M is imports. All figures are in billions of dollars. Each question is independent of other question using the same table, unless otherwise stated. Price Level 128 125 122 119 116 minus $2 billion. minus $4 billion. $2 billion. с $18 $20 $22 $24 $26 zero Ig $2 $4 $6 $8 $10 G $3 $3 $3 $3 $3 Refer to the table. If this nation's equilibrium price level is 125, its net exports will be: X $1 $2 $3 $4 $5 M $5 $4 $3 $2 $1 Real GDP

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter10: Income And Expenditures Equilibrium

Section: Chapter Questions

Problem 2E

See similar textbooks

Similar questions

Using the following data, determine: National Income (GDP) 1,275 billion Marginal propensity to consume, b 0.9 Proportional rate of taxes 0.35 Autonomous expenditure 45 billion Exports 400 billion Marginal propensity to import, MPIm 0.23 Part 1: Level of Canadian imports, M? Part 2: Level of Canadian net exports, NX? Part 3: Is the trade balance in: (answer 1 for Surplus or 2 for Deficit )
Use the expenditure details of a small economy to answer the questions. All the autonomous expenditures are given in $ million. Consumption expenditure ( C ) = $100 + 0.9 ( Y - T ) Investment(l) = $20 Government expenditure(G) =$80, Tax(T) =0.05Y Export(X) = $40 Import(M) =0.1 Y a. Determine the aggregate expenditure(AE) equation. Provide the working to your answer. b. Determine the equilibrium level of income? Provide the working to your answer. c. Explain the government's budget and trade balance and determine the size of the government's budget and trade balance. d. Suppose the government increase its expenditure by $ 10 million. Determine the new equilibrium income? Provide the working to your answer. e. How much the government must increase its spending to achieve an equilibrium income of $1,000 million? Provide the working to your answer. f. Suppose the full-employment income is $1,200 million. Describe the current economics situation based on the result in part(b). What does the…
Answer the question on the basis of the following table for a particular country in which C is consumption expenditures, Ig is gross investment expenditures, G is government expenditures, X is exports, and M is imports. All figures are in billions of dollars. Each question is independent of other question using the same table, unless otherwise stated. Price Level C Ig G X M Real GDP 128 $18 $2 $3 $1 $5 125 $20 $4 $3 $2 $4 122 $22 $6 $3 $3 $3 119 $24 $8 $3 $4 $2 116 $26 $10 $3 $5 $1 Refer to the table. The real-balances effect of changes in the price level is: Group of answer choices shown by columns (1) and (5) of the table. shown by columns (1) and (4) of the table. not shown by the data in the table. shown by columns (1) and (2) of the table.
Which of the following best explains why a fiscal expansion tends to decrease net exports? OA. An expansionary fiscal policy leads to an increase in output, an increase in the interest rate and an appreciation of the domestic currency. The appreciation causes imports to increase whereas a higher level of output increases exports. Therefore, net exports decrease. OB. Net exports, NX NX(Y, Y, E), depend negatively on domestic output, Y, and positively on the exchange rate, E. An expansionary fiscal policy leads to an increase in output but has no impact on the exchange rate. Therefore, net exports decrease. O C. An expansionary fiscal policy leads to an increase in output, an increase in the interest rate and a depreciation of the domestic currency. Both a depreciation of the domestic currency and a higher level of output combine to decrease exports and increase imports. Therefore, net exports decrease. O D. Net exports, NX NX(Y, Y, E), depend positively on domestic output, Y, and…
For this problem, assume exports equal zero and that firms did not purchase any plant or equipment in the years specified. Suppose in the year 2015, firms in this this country produced 4,000 million widgets, all of which they planned on selling. (In other words, firms were not planning on any changes to their inventories.) Of those 4,000 million widgets, households purchased 3,000 million, and government purchased 750 million. In 2015, what were firm’s planned investments equal to? In 2015, what were firm’s actual investments equal to? (explain). In 2015, what was the relationship between planned expenditures and actual expenditures? (Explain and use numbers) In 2015, what was the relationship between actual expenditures and the amount of output (widgets) produced? All else equal, what will firms likely do in the following year?
Discuss which of the following fall into the categories of consumption, investment, government expenditure and net exports from the Y = C + I + G + NX (X – M) identity, and whether the impact is to increase or decrease GDP.Thomas buys a new house
From the following information calculate the value of government purchases (G), consumption (C), and private domestic Investment (I) (all variables are In billions of dollars). National income Y = 6,000 tax revenues TA = 1,500 Private domestic saving S = 1 ,000 transfer payments TR = 700 net exports NX = -120 budget deficit BuD = 230
$ 500,000 $ 40,0000 $ 80,000 $ 10,000 $ 10,000 $ 50,000 $ 20,000 $ 7,000 Discuss which of the following fall into the categories of consumption, investment, government expenditure and net exports from the Y = C + I + G + NX (X – M) identity, and whether the impact is to increase or decrease GDP. (a) Charles buys a second-hand textbook from Tim. (b) When Charles bought the book, he paid Sarah $10 to collect it from Tim. (c) Thomas buys a new house (d) Your firm sells meat to Indonesia (e) The fish and chips shop down the road buys fish to make meals for diners. (f) The same shop buys a deep fryer to fry fish for meals.
Show how a GH¢2,000 increase in government spending financed by a GH¢2,000 increase in taxes will affect the level of national income.
Is a family a household? Is a household a family? Which sector (Households, Businesses, or International) spends the most? Which sector spends the least? Which sector, because of its volatility, has an importance greater than is warranted by its size? What does it mean if net exports are negative? People sometimes argue that imports should be limited by government policy. Suppose a government quota on the quantity of sugar to be imported to the United States occurs. What is likely to happen to the price of sugar in the United States and in the rest of the world? List the four sectors of the economy along with the type of spending associated with each sector. Order the types of spending in terms of magnitude, and give an example of each kind of spending. Using the interconnection between sectors of the economy, explain the effects of imposing an increase in taxes on the household sector.
Imagine that the U.S. economy finds itself in the followingsituation:agovernmentbudgetdeficitof$100 billion, total domestic savings of $1,500 billion, and total domestic physical capital investment of $1,600 billion.Accordingtothenationalsavingandinvestment identity,whatwillbethecurrentaccountbalance?What willbethecurrentaccountbalanceifinvestmentrisesby $50billion,whilethebudgetdeficitandnationalsavings remain the same?
Durable Goods Consumption Expenditures $350 Nondurable Goods Consumption Expenditures $1,000 Services Consumption Expenditures $3,000 Business Fixed Investment $1,500 Change in Inventories -$100 Government Consumption Expenditures and Gross Investment $2,000 Exports $1,000 Imports $700 Refer to the table shown here. What is the value of net exports or the trade balance? Selected Answer: -$300. Answers: $300. -$300. $1,700. -$1,700.