For the next three questions, conside closed economy with the following information: • Economic investment = $4500 • Private savings = $3000 • Output (income) = $16,000 • Consumption = $11,000 This economy has no transfer payme in other words, total taxes and "net t are the same thing. Carefully following all numeric ve ote olaulete this

For the next three questions, conside closed economy with the following information: • Economic investment = $4500 • Private savings = $3000 • Output (income) = $16,000 • Consumption = $11,000 This economy has no transfer payme in other words, total taxes and "net t are the same thing. Carefully following all numeric ve ote olaulete this

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter20: Exchange Rates And The Macroeconomy

Section: Chapter Questions

Problem 3TY

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For the next three questions, consider a closed economy with the following information: Economic investment = $6000 Private savings = $4100 Output (income) = $20,000 Consumption = $11,000 This economy has no transfer payments; in other words, total taxes and "net taxes" are the same thing. calculate this economy's government purchases (G). calculate this economy's public savings. calculate this economy's taxes (T). Note that there are no transfer payments.
Consider a closed economy in which total output equals $13,000. The economy also has the following information: Consumption totals $6500 Government spending totals $2500 Private savings totals $3800 Carefully following all numeric instructions, tell me this economy's net taxes (T). Carefully following all numeric instructions, tell me this economy's public savings. Carefully following all numeric instructions, tell me this economy's economic investment.
Define the term Projected annual net savings?
Suppose you are given the following data for a particular economy (unit: Millions of Euros):Gross National Income mp (GNImp) =1650Investment (I) = 220(Iliq) Net investment = 210Private consumption(C) =1100Net External Income (NEI) = 0Net Indirect Taxes (NIT) = 231Public Spending (G) = 363 Calculate: a) Balance of Goods and Services or Net Exports (NX) and Amortizations/Depreciations (A). b) Net National Product at Base Prices (NNPbp) and Net Domestic Product at Base Prices (NDPbp)
What is the relative importance of consumption spending (C) in aggreagte demand and some factors that affect it? What is the relative importance of investment spending (I) in aggreagte demand and some factors that affect it? What is the relative importance of government spending (G) in aggreagte demand and some factors that affect it? What is the relative importance of Net Export (NX) (Net Export = spending on exports (X) - imports (M)) in aggreagte demand and some factors that affect it?
Accordingtothetextbook,whichofthefollowingstatementsis(are)correct? (x) An advantage of a consumption tax over the present income tax system is that a consumption tax discourages consumption and encourages saving. (y) If interest income from savings is taxed, a disincentive to save is created and less saving occurs. (z) An advantage of a consumption tax over the present tax system is that a consumption tax places more of the tax burden on the wealthy. (x), (y) and (z) (x) and (y) only (x) and (z) only (y) and (z) only (x) only
Give any two example of the capital expenditure??
Suppose the data BELOW is for a given year from the annual Economic Report of the President. Calculate GDP using the expenditure approach (Amount in billions of dollars): Corporate profits: $ 305Depreciation: $ 479Gross private domestic investment: $716Personal taxes: $ 565Personal saving: $120Government spending: 924Imports: $ 547Exports: $ 427Personal consumption expenditures: $ 2,966Indirect business taxes: $ 370Contributions for Social Security (FICA): $ 394Transfer payments and other income: $ 967
Assume that a national restaurant chain called BBQ builds 20 new restaurants at a cost of $1 million per restaurant. It outfits each restaurant with an additional $400,000 of equipment and furnishings. To help partially defray the cost of this expansion, BBQ issues and sells 400,000 shares of stock at $40 per share. a. What is the amount of economic investment that has resulted from BBQ’s actions? $_________ million b. How much purely financial investment took place? $__________ million
The following are a year's data for a hypothetical economy. Comsmption $400B, Government purchases $350B, GDPI $150B, Exports $150B, Imports $100B, Depreciation $50B. a) what is the value of GDP and NDP? b) what is the value of Net private Domestic investment ? c) suppose that in the next year exports increases to $175B, imports increase to 200B, and consumption falls to 350B. What will GDP be in that year?
Which one of the following statements is FALSE?(a) There are four broad groups of decision‐making units in the economy:households, firms, government and the foreign sector;(b) Savings are an important injection into the circular flow of income andMultiple‐choice questions: Select one correct answer for each of the following. In your answer booklet, write down only the number of the question and next to it, the letter of the correct answer.spending in the economy;(c) Taxes are a leakage or withdrawal from the flow of income and spending in the economy;(d) Spending by households on consumer goods and services is calledconsumption spending.
Economists in Funlandia, which has a closed economy, have collected the following information about the economy for a particular year: YY = = 10,00010,000 CC = = 6,0006,000 TT = = 1,5001,500 GG = = 1,7001,700 The economists also estimate that the investment function is: II = = 3,300−100r3,300−100r where rr is the country’s real interest rate, expressed as a percentage. Complete the following table by calculating private saving, public saving, national saving, investment, and the equilibrium real interest rate. Component Amount Private Saving Public Saving National Saving Investment Equilibrium Real Interest Rate