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- If PAE is greater than Y, we expect: Multiple Choice there will be no change in inventories. the government will spend more than it has collected in taxes. inventories to decrease. inventories to increase. When PAE decreases an economy will move towards: Multiple Choice higher levels of equilibrium aggregate expenditure. lower levels of equilibrium GDP. constant levels of GDP. higher levels of equilibrium GDP Ans bothThe MPC is Group of answer choices the change in consumption divided by the change in income. consumption divided by income. the change in saving divided by the change in income. the change in consumption divided by the change in saving.Evaluating the relationship between R&D expenditures and net income is an example of the diagnostic analytics of __________. Multiple Choice determining relations/patterns/linkages between variables through statistical analysis performing drill-down detailed analytics identifying anomalies/outliers performing descriptive analytics
- Which of the following statements is most accurate? a.Most of the variation in consumption spending can be explained by changes in debt b. There is no single factor that explains much of the variation in consumption spending c. Most of the variation in consumption spending can be explained by changes in the interest rate. d. Most of the variation in consumption spending can be explained by changes in wealth e. most of the variation in consumption spending can be explained by changes in disposable income.During the 2012 fiscal year, households in an economy spent 80 per cent of their disposable income on consumption as well as GH¢300 consumption expenditure which is independent of income. Total government expenditure which stood at GH¢800 was supposed to be financed from a proportional tax levy of 50 per cent of national income and a VAT of GH¢100. Total private investment spending was made up of GH¢400 whereas export was GH¢400 and anautonomous import of GH¢500. Also, marginal propensity to import was 0.15 Determine the equilibrium national income for this economy.During the 2012 fiscal year, households in an economy spent 80 per cent of their disposable income on consumption as well as GH¢300 consumption expenditure which is independent of income. Total government expenditure which stood at GH¢800 was supposed to be financed from a proportional tax levy of 50 per cent of national income and a VAT of GH¢100. Total private investment spending was made up of GH¢400 whereas export was GH¢400 and anautonomous import of GH¢500. Also, marginal propensity to import was 0.15.1. Determine the equilibrium national income for this economy.2. Determine the consumption and savings levels at equilibrium national income.3. Find the size of the (expenditure) multiplier.4. Determine the new equilibrium level of income if government expenditure increases by GH¢70.5. If full employment output is 2000, what macroeconomic problem does this economy face? 6. In what direction should government expenditure change in order to achieve full employment output? 7. Determine…
- The average propensity to consume refers to the Group of answer choices percentage of income spent for current consumption expenditures for the minimum necessities of life percentage of income saved dollars of income spent for current consumption fact that people with higher incomes spend more for the necessities of lifeHome equity is the single largest component of net wealth for most families in the United States. If home equity falls a. autonomous consumption will decrease, shifting the aggregate planned expenditure line downward b. the marginal propensity to consume will decrease, decreasing the slope of the aggregate planned expenditure line c. autonomous consumption will increase, shifting the aggregate planned expenditure line upward d. the marginal propensity to consume will decrease, increasing the slope of the aggregate planned expenditure line e. autonomous consumption will decrease, shifting the aggregate planned expenditure line upwardAssume that the level of autonomous consumption rises. Show in a graph what happens to the consumption function. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
- The consumption expenditure and output of the country is 500 billion and 100 billion respectively. Calculate the average propensity to consume.Which of the following is correct? When the consumption function lies above the 45-degree line, households (a) spend on consumption a decreasing percentage of any increase in income.(b) save all of any increase in income.(c) are dissaving.(d) spend on consumption an increasing percentage of any increase in income. Give proper explanatationsThe MPC measures the relationship between: a change in consumption and a change in income. change in consumption and savings. changes in consumption and changes in savings. the proportion of income to consumption at any given level of income. the total level of consumption and the total level of saving.
