eggregate expenditure (AE) curve

Q: Evaluating the relationship between R&D expenditures and net income is an example of the diagnostic…

A: Drill-down is an operation enabling a user to move from one point of data to another one in order to…

Q: Troll Island is a small island nation that recently experienced an autonomous change in aggregate…

A: Change in AE = 8 billion MPC = 0.55

Q: Aggregate expenditure is 790. Income is 730 and consumption is 720, income increases to 750 and…

A: Investment can be calculated as follows: Aggregate…

Q: enditu

A: Gross domestic products includes all final goods and services which are being produced by the…

Q: Find the value of multiplier when MPC is equals to 0.70

A:

Q: Calculate the equilibrium level of income in the economy, if C = 500+ 0.9Y. and investment…

A: Consumption function in the economy; C = 500+ 0.9Y Investment expenditure = 3000

Q: Find the value of the multiplier when the MPS equals to 0.70

A: Formula:  Multiplier = 1/(1-MPC)  MPC = 1- MPS

Q: ind MPC in the given consumption function Y=100+0.8Yd

A: The provided consumption function is: Y=100+0.8Yd

Q: Which one of the following statements about consumption spending is incorrect? А. Spending on…

A: Consumption Spending is one of the most important component of Gross Domestic Product. Consumption…

Q: Construct a consumption function from the data given here and determine the MPC. Given the…

A: Consumption function shows the relationship between disposable income and consumption.

Q: Derive the expenditure multiplier using the lump sum taxes (or fixed sum)

A: The ratio of change in the GDP due to change in the taxes is known as the the multiplier. The…

Q: C = 400 + 0.80Y and I = 200, then the level of consumption at equilibrium income is equal to

A: Equilibrium level of income: Y = C + I + G + NX where, Y is the income C is the consumption  I is…

Q: When a business buys a new computer to design its product, this spending is called?   A. Goverment…

A: Expenditure- It is the amount that is spent on something. It is divided into four parts i.e.…

Q: Elaborate three determninants in which consumption can be increased according to the consumption…

A: Consumption is characterised as utility acquisition spending.

Q: Suppose the consumption equation is represented by the following: C = 250 + 0.75Yp. The expenditure…

A: 9) Expenditure multiplier is given as  = 1/(1-MPC) Where MPC is marginal propensity to consume

Q: Calculate change in consumption when change in income is $300 and the MPC is 0.42

A: The information being given is as:- Change in income = $300  MPC = 0.42 Change in consumption = ?

Q: At equilibrium expenditure, unplanned change in inventories must be positive True False

A: Note: Since you have asked multiple questions, we will solve the first question for you. If you want…

Q: ECONOMICS In an economy the consumption function is C=500+0.75 Y, where C is consumption expenditure…

A: Equilibrium level of income  means when aggregate demand is equals to aggregate supply (AD=AS) and…

Q: In the economy of Keynesian Island, autonomous consumption expenditure is $50 million, and the…

A: It is given that the autonomous consumption in the Keynesian land is $50 million. This means that…

Q: Calculate the value of MPC if the multiplier is given to be as 1.4

A: The value of multiplier is given as:- MULTIPLIER = 1 / Marginal propensity to save Also we know…

Q: Calculate income if Average propensity to consume is 0.77 and the consumption is $400

A: The economics as a study is based upon the idea that the societies tend to have a limit to the…

Q: In an economy investment expenditure increased by 20 billion and the marginal propensity to consume…

A: As per the question, Increase in investment expenditure = 20 billion MPC or marginal propensity to…

Q: What is the expenditure multiplier in this economy? Planned Government Net Exports Aggregate Change…

A: Expenditure Multiplier refers to the ratio of the change in Gross Domestic Product to the change in…

Q: The ratio of the change in GDP to an initialchange in aggregate expenditures (AE) is thea. spending…

A: Aggregate Expenditure is the total expenditure done on the purchase of goods and services in an…

Q: How is it possible for consumption expenditure to be positive even when disposable income is zero?

A: The consumption function gives the relationship between consumption and disposable income.

Q: Calculate marginal propensity to consume from the following Equilibrium income $350 Consumption…

A: According to question we are given that consumption expenditure at zero income =$20 investment =$50…

Q: There is a direct relationship between spendable income and consumer spending

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: Disposable income is the amount a household has  A   after subtracting autonomous spending. B…

A: Disposable income is the income the consumer has which is available for spending.

Q: Calculate the value of multiplier if change in income is $1100 million and the change in investment…

A: The information being given is:- Change in income = $1100 million Change in investment = $350…

Q: i) calculate the national income equilibrium ii) based on your answer in (i) show the aggregate…

A: GDP refers to the total value of finished goods and services that produced within the economic…

Q: Troll Island is a small island nation that recently experienced an autonomous change in aggregate…

A: Marginal Propensity to Consume (MPC): It refers to the proportion of income that is spent on…

Q: c. What is the MPI? d. What is the level of aggregate expenditures at each level of income? e. Graph…

A: The national income and the aggregate expenditure form a relationship and can be witnessed on the…

Q: Find autonomous Expenditure from the following:- Autonomous consumption = $200  Marginal…

A: # The consumption expenditure for the household is considered to be as the goods and services on…

Q: Consumption = 115 + 0.6Y Investment = 550 Use the above information to answer the questions that…

A: Given that: Consumption = 115 + 0.6Y Investment = 550 Consumption and investment are the…

Q: If the MPC is .6 and the equilibrium GDP is $30 billion below the full employment GDP, then the size…

A: Recessionary expenditure gap = (Full employment GDP - Equilibrium GDP) / Multiplier, where…

Q: The following data characterises the macroeconomic conditions of a hypothetical еcoпотy: C = 50 +…

A: Given:- C=50+0.8Yd I=100 G=T=75 To calculate:- Equilibrium income=? Multiplier value=? Please find…

Q: Explain the difference between induced consumption expenditure and autonomous consumption…

A: Consumption expenditure is the expenditure incurred by the household sector on the purchase of final…

Q: Is the following statement TRUE or FALSE? Please provide reason for the answer. The positive…

A: Disposable income is the left amount in hand after paying taxes . And it is used for consumption of…

Q: What is the relationship between the MPC and the multiplier?

A: The Keynesian consumption function shows the relationship between the consumption expenditure and…

Q: Which of the following is not a valid expenditure function? UP UP, None of these can be expenditure…

A: An expenditure function gives the lowest level of expenditure to be incurred by a consumer to attain…

Q: Construct a consumption function from the data given here and determine the MPC. Given the…

A: Year Consumer Spending($) Disposable Income($) 2014 1,200 1,500 2015 1,440 1,800 2016 1,680…