Q: The following information is provided about an open economy with a government. Use the information…
A: Answer: Given: C = 450 + 0.4YI = 350G = 150X = 70Z = 35 + 0.1YT = 0.15YYf = 1550 Calculation: The…
Q: Fill in the blanks: The following shows information of a hypothetical economy in a given year.…
A: Y=Consumption+Investment+Government purchase+Net Exports Y=350+100+125+(60-50)Y=575+10Y=585
Q: Briefly explain what a change in any part of the national saving and investment identity points out.
A:
Q: Briefly discuss THREE economic policies that encourages household savings.
A: Household saving refers to the portion of income that is not consumed. It is the simple difference…
Q: Briefly discuss five reasons why a rise in real Gross Domestic Product within a country over time…
A: The measure that depicts the final goods and services that are being produced in an economy during a…
Q: Calculate what the new equilibrium income should be if the government of this country decides to…
A: The equilibrium condition for the economy in the Simple Keynesian Model(SKM) is Y=C+I+G+(X-Z) Y: GDP…
Q: Suppose MPC = 0.8 and MPL = 20. For each of the following, compute ΔS (change in national saving) in…
A: National saving is the aggregate of public saving and private saving. Households save the portion of…
Q: What do you call the Circular flow of goods and income of households and firms with the government…
A: The Circular Flow of goods and income of households and firms with the government and foreign…
Q: The following data is from the economy of Middle Earth. Household saving is $30 Consumption is $60…
A: National saving is the portion of GDP( gross domestic product ) which is saved instead of being…
Q: Scenario 1. Assume the following information for an imaginary, closed economy. GDP = $100,000; taxes…
A: The economy is closed GDP is $100,000 Taxes is $22,000 Government purchases are $25,000 National…
Q: Suppose that in a closed economy GDP is 11,000, consumption is 7,500, and taxes are 2,000. national…
A: In a closed economy, when GDP is calculated using expenditure methods, there used to be only three…
Q: A rise in investment by $200,000 will lead to a __________________________________. Group of answer…
A: The rise in the investment leads to rise in the expenditure in the economy. The expenditure helps to…
Q: Using what you know about national income accounting, answer the following: Assuming that…
A: National income is the summation of all factored income earned by the normal resident of a country…
Q: briefly explain the role of the open economy multipliers?
A: If a country has a closed economy, then it is said to be a self-sufficient economy. The country’s…
Q: For an open economy, which of the following expressions represents private saving (S)?investment…
A: Open economy is referred as the kind of economy which deals or trade with economies of the world in…
Q: Find the following, assuming that government investment is zero: (a.) Consumption (b.) Net exports…
A: GDP: It means the total market value of all final goods and services manufactured during a…
Q: The table above gives the values of different expenditures in the United States. Answer the…
A: The most common method to calculate the gross domestic product of an economy is the expenditures…
Q: Draw a graph representing a hypothetical economy. Carefully label the two axes, the S + T + IM…
A: Answer: Step 1: The equilibrium level of the real GDP is determined when the leakage from income…
Q: Given the following data on a simple closed economy: C= 10 +0.75 Y I = 20 G = 40 where C is…
A: Given information: C = 10 + 0.75Y ------------> Consumption function I = 20…
Q: Suppose the economy is four sectors economy. The economy is represented by the following: C = 400 +…
A: Here, it is given that the imports decreases by 10 with all other information as same due to which…
Q: Explain why the multiplier in an open economy is different from the multiplier in a closed
A: *Answer:
Q: In 2,011, Econistan had consumption of $115 billion, investment of $130 billion, government spending…
A: The mathematical expression that indicates the relationship between imports, exports and the gross…
Q: Briefly discuss the role the State plays as adviser in the labour relationship
A: State: It is characterized as an area with its own administration and boundaries inside a bigger…
Q: Consider a closed economy without a government. If the GDP of the economy is $63,000 and the…
A: When the economy is closed and there is no government, then GDP = C + I Where C is consumption and I…
Q: iven the following information, calculate personal consumption expenditures. GDP $5,000 Gross…
A: It is given that the GDP is $5,000, gross private domestic investment is $1,500, government…
Q: An Indian citizen living in the US builds a new house in Spokane. In GDP calculations, this would be…
A: Gross domestic product (GDP) measures the aggregate of all the goods and services produced within…
Q: Suppose a country, Macroland, doesn't trade with other countries. Its GDP is $20 billion. Its…
A: GDP measures the market value of goods and services produced within an economy in a given period of…
Q: In a closed economy, net exports are - ___________________ Select one: a. Lesser than 0 (< 0) b.…
A: A closed economy is one that does not interact with other economies in the world. There are no…
Q: Which of the following equals Aggregate Expenditures in a closed economy? Select one: a. none of the…
A: Aggregate Expenditure is the total expenditure done in the production of goods and services in an…
Q: While national income and domestic product must be equal, income must also equal expenditure for…
A: GDP estimates the final market value of services and goods produced within a year by a country. It…
Q: In a simple closed economy, consumption is given by the relationship C=0.75Y, where C is consumption…
A: Gross domestic product is the value of final goods and services produced in the economy within a…
Q: Now assume, the parliament passed a tax reform aimed at making investment more attractive—for…
A: The model of the loanable funds market is used to determine the equilibrium interest rate and the…
Q: Which of these would be a drain on the GDP A. negative net exports B. positive net exports
A: GDP is production of goods and services during an accounting year.
Q: What are the effect of taxes on saving and consumption of less income people in low income…
A: Taxes is the compulsory payment levied by the government on the citizens of the country. Government…
Q: An economy consumes 1 million chickens each year. A new technology in raising chickens lowers the…
A: The GDP that is saved instead of spent in an economy is referred the be as national saving. It is…
Q: The following information is provided about an open economy with a government. Use the information…
A: Gross domestic product (GDP) refers to the total value of all the final goods and services that…
Q: Briefly analyse the difference between a closed economy and an open economy.
A: Economy refers to the state of production, consumption, distribution of goods and services, and the…
Q: In the small closed economy of Bonretia, the currency is the denar. Statistics for last year show…
A: Given: Private savings = 50 billion Taxes = 40 billion Government expenditure = 30 billion Transfer…
Q: Briefly describe the demirits of state enterprise in the field of national income?
A:
Q: In an imaginary economy, the size of GDP is 30 million dollar. If consumption is 18 million,…
A: GDP: Gross domestic product or GDP is the sum total of the final value of all the goods and services…
Q: what ia aggregate spending
A: When studying economics, there are various economic terms that an individual needs to know and…
Q: calculate showing all working: (i) National Income (ii) Net Investment
A:
Q: Define private saving, public saving and national saving. How are they related?
A: Savings is the income which is not spent on the consumption and saved for future consumption.
Q.2.2 Briefly analyse the difference between a closed economy and an open economy.
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- Briefly analyse the difference between a closed economy and an open economy.Briefly explain whether investment spending is likely to increase more rapidly in a country with a rapidly growing population or in a country with a slowly growing population. Does your answer depend on whether the country is a high-income industrial country or a low-income developing country?How will you differentiate an open economy from a closed economy? Explain with the help of an example.
- Briefly explain what a change in any part of the national saving and investment identity points out.Given the following on a closed economy, determine the following The level of Private savings The level of Public savings The level of national savingconsider the following hypothetical economy. The economy is closed, meaning the economy neither exports or imports. And the economy national saving us 20 trillion and government expenditure is 5 trillion. What is the level of investment
- Consider country A, which is a closed economy. Suppose that A’s private saving is 280 and investment is 250. What is the public saving? Consider country B, which is a closed economy. B’s private saving is 500, its government spending is 100, budget deficit is 50, consumption is 1000. what is the B’s investment and the disposable income, Y – T (Y is the total income, T is tax revenue)?What happens to the level of net exports in an economy when income in that economy increases? What happens to the level of net exports in an economy when income in other economies increases?Economics Consider the following data for country B, an open economy, for this year: Y = $14 trillion C = $6 trillion G = $2 trillion NX = $3 trillion T = $4 trillion TR = $0.5 trillion a) Find country B’s domestic investment. b) Find country B’s private saving. c) Find country B’s public saving. d) Find country A’s national saving. e) Find country B’s net foreign investment
- How does investment as defined by economists differ from investment as defined by the general public?What happens in a private closed economy when aggregate expenditures exceed GDP? a. GDP will decline b. Business inventories will rise c. Saving will decline d. Business inventories will fallConsider a closed economy without a government. If the GDP of the economy is $63,000 and the consumption in the economy is $45,000, the saving rate in the economy is ________. 86 percent 24 percent 57 percent 75 percent