Assume that the gross domestic product is $6,000, personal disposal income is $5,100, the government deficit is $200, consumption is $3,800, and the trade deficit is $100. What is the size of: d. National Savings e. Taxes f. Public savings
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Assume that the gross domestic product is $6,000, personal disposal income is $5,100, the
government deficit is $200, consumption is $3,800, and the
of:
d. National Savings
e. Taxes
f.
Step by step
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- If consumption is $11 trillion, investment is $2 trillion, government purchases are $3 trillion, exports are $2 trillion and imports are $3 trillion, calculate GDP. Use the formula GDP = C + I + G + (X – IM). I suggest just leaving the numbers in trillions (rather than adding in 9 extra zeroes). In the previous problem, is this country running a trade deficit or surplus?Assume that the Gross Domestic Product is $6000, personal disposal income is $5100, the government deficit is $100, consumption is $3800 and trade deficit is $100. Calculate Private savings Investment Government spending National savings Taxes Public savingsGiven the numbers below, a. show that the country has a twin deficit?b. Find the output Y? c. Find the private saving, public saving, and national saving?d. Find the net exports?Tax: T= 500 dollars.Gov’t spending: G= 700 dollars.Disposable income Yd = 900 dollars.Consumption: C= 400 dollars.Investment: I= 500 dollars
- onsider the following data (in billion $) for a country in a particular year: (assume this country has Zero Transfer Payment Personal consumption expenditure (C) 200 Exports (x) 10 Government Purchases of goods and services (G) 120 Imports (m) 15 Gross Domestic Product (Y) 1800 Taxes 20 d. What is the value of gross investment? e. What is the value of net export? f. Is the country lending to or borrowing from rest of the world? g. Dose the government has deficit, balance or surplus budget? h. What is the amount of investment financed by national saving? i. What is the amount of investment financed by borrowing from rest of the world? J. What is the meaning of transfer paymentAssume that the gross domestic product is $6,000, personal disposal income is $5,100, thegovernment deficit is $200, consumption is $3,800, and the trade deficit is $100. What is the sizeof:a. Private Savingb. Investment c. Government Spendingd. National Savingse. Taxesf. Public savingsFrom 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
- 6. After a tax increase, households often reduce spending and save more. This canresult in:a. An increase in the national budget deficitb. An increase in public and private savingsc. A long-run decrease in capital accumulationd. A short-run decrease in national savings and investment, and a long-rundecrease in productivity1. An increase in the budget deficit is the result of: (a) Expansionary monetary policy; (b) Contractionary monetary policy; (c) Expansionary fiscal policy; (d) Contractionary fiscal policy. 2. Company tax is a: (a) Progressive, direct tax; (b) Progressive, indirect tax; (c) Proportional direct tax; (d) Regressive indirect tax. 3. In the base year, a country produced 50 units of output at a price of R6,00 each for a nominal GDP of R300. This year it produces 60 units of output at a price of R8,00 each. What is the percentage change in real GDP since the base year?(a) 5%; (b) 10%; (c) 20%; (d) 15%. 4. Which of the following statements about Fiscal Policy is INCORRECT?(a) In order to combat inflation, the South African Reserve Bank must apply a contractionary fiscal policy;(b) A contractionary fiscal policy can result in higher levels of unemployment; (c) Expansionary fiscal policy will increase the budget deficit; (d) The application of fiscal policy will have no effect on…Consider the following information (amounts in Kshs. Billions) C = 30 + 0.75Y I = 20 T = 0.4Y NX = 65 G = 45 Determine: a) Equilibrium National Income b) Government deficit/surplus c) Additional government expenditure required to raise equilibrium national income by Kshs. 50 billion.
- If consumption is $300 billion, investment is $100 billion, government purchases are $200 billion, exports are $200 billion, and imports are $100 billion, calculate GDP. (Just leave the numbers in billions.)8. In the previous problem, is the country running a trade deficit or surplus?Consider the following data (in billion $) for a country in a particular year: (assume this country has Zero Transfer Payment Personal consumption expenditure (C) 200 Exports (x) 10 Government Purchases of goods and services (G) 120 Imports (m) 15 Gross Domestic Product (Y) 1800 Taxes 20 d. What is the value of gross investment? e. What is the value of net export? f. Is the country lending to or borrowing from rest of the world? g. Dose the government has deficit, balance or surplus budget? h. What is the amount of investment financed by national saving? i. What is the amount of investment financed by borrowing from rest of the world? J. What is the meaning of transfer paymentAn increase in the budget deficit is the result of: A) Expansionary monetary policy; B) Contractionary monetary policy; C) Expansionary fiscal policy; D) Contractionary fiscal policy. Company tax is a: (a) Progressive, direct tax; (b) Progressive, indirect tax; (c) Proportional direct tax; (d) Regressive indirect tax. In the base year, a country produced 50 units of output at a price of R6,00 each for a nominal GDP of R300. This year it produces 60 units of output at a price of R8,00 each. What is the percentage change in real GDP since the base year? (a) 5%; (b) 10%; (c) 20%; (d) 15%.