economy, firms tend to hold 30% of output as inventory. i. If in a period 1, total output is 200 units, calculate the stock of inventory in that period. ii. If production increases by 50% in the following period,
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In an economy, firms tend to hold 30% of output as inventory.
i. If in a period 1, total output is 200 units, calculate the stock of inventory in that period.
ii. If production increases by 50% in the following period, calculate inventory investment
over the two periods.
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Solved in 2 steps
- Explain consumption function, with the help of a schedule and diagram (I need correct answer otherwise I will give you dislike)Given the following on a closed economy. C = 40 + 0.8Yd C= consumption I = 55 – 200r I= Investment G = 20 G = government spending T = 20 T = Taxes Ye = 400 Ye = National Income r = rate of interest Determine the following: The equilibrium level of consumption The level of investment The level of interest rateb. Explain the difference between saving and investment as defined by a macroeconomist. c. Which of the following situations in c (i) & c (ii) represent investment? Saving? Explain(i) Your family takes out a mortgage and buys a new house. (ii) You use your paycheque to buy stock in Sagicor Financial Services.
- 5. If investment also depends on real income, say I = g0 − g1r + g2Y what is the slope of the IS curve?In the long run, what happens to consumption in the economy when people are saving less? a) remains the same b) cannot tell from the graph c) decreases d) increaseshow to find gross investment in the economy? is it correct if i add Net investment to Capital Consumption? Gross Investment = Net investment + Capital Consumption
- In early 2001 investment spending sharply declined in the United States. In the 2 months following the September 11, 2001, attacks on the United States, consumption also declined. Use AD-AS analysis to show the two impacts on real GDP.T. Haavelmo devised a model of the US economy for the years 1929–1941 based on the followingequations:(i) c = 0.712y + 95.05 (ii) s = 0.158(c + x) − 34.30(iii) y = c + x − s (iv) x = 93.53Here x denotes total investment, y is disposable income, s is the total saving by firms, and c istotal consumption. Write the system of equations in the form (1) when the variables appear inthe order x, y, s, and c. Then find the solution of the system.In the below table, C is consumption expenditure, Iis investment, G is government expenditure, and NX is the net exports. All entries are in million dollars. (SHOW THE STEPS OF CALCULATIONS) c) What is the unplanned inventory change when GDP is equal to $2200 million? d) How much is the level of savings when income is $2300 million?
- In an economy of three sectors, assumed that : C= 400 + 0.75YD T= 400 I=300 G=400 All the variables are in RM Million. a) Based on the above information complete the table below. National Income Consumer Savings Aggregate Expenditure 3000 8000 Please provide me with the full answers with the working of the calculation so that I could learn it better. Thanks in advance.From 2007 to 2009, calculate the percentage change in (Enter your responses as a percentage rounded to one decimal place. If you are entering any negative numbers be sure to include a negative sign (−) in front of those numbers.) a. real consumption. __% b. real investment. __ % c. real government spending. __ %Urgently need Suppose jane Purchases a $600000 BMW that was produced in Germany. Which of the following describes how this would be recorded in Canadian GDP accounts. a. Net Exports Increase $60,000 b. Net Exports decrease $60,000 c. Investment increases by $60,000 and net exports increase by $60,000 d. Consumption increases by $60, 000 and net exports decreases by y$60,000 Please fully explain the answer you choose.
