Given that C = 1000 + 0.8 Y and = $200 %3D Use the injection and leakage approach to find out the equilibrium income What is the value of the investment multiplier? Find out the amount of saving and consumption respectively. a. b. с.
Q: 5. The cost function for a firm facing perfect competition is C(q)=1000+25q-0.5q^2+0.01q^3 Sketch…
A:
Q: Consider a single country and a single good. The demand curve for this good is given by QD = 144 -…
A: Hi! Thank you for the question, as per the honor code, we are allowed to answer three sub-parts at a…
Q: The demand and supply curves for a product are given as: Demand: p+ q = 120 Supply: 2 p-5 q = 40 At…
A: Given Demand equation: p+q=120 .... (1) Supply equation: 2p-5q=40 ... (2) Price p…
Q: Consider production function f(L, K) = 10VLK and input prices w :10,r = 90.
A:
Q: After graduation, you enter salary negotiattons for your first job. Suppose the potentlal employer…
A: Give game has perfect information so we can use the backward induction.
Q: How do we call a good with income elasticity less than zero?
A: Income elasticity measures the change in quantity demanded to the change in income. It tells us by…
Q: A tariff-rate quota O a. displays either tariff-like or quota-like characteristics O b. tends to…
A: The tax that is being imposed by one country on the services and goods that are being imported from…
Q: is it true or false that the growth rate of the GDP per worker for an economy where the capital to…
A: The quantity of capital required to create one unit of output is referred to as the capital output…
Q: Price ($)Quantity Demanded Quantity Supplied 200 26,000 12,000 23,000 20,000 245 16,000 290 20,000…
A:
Q: The confidence intervals (CI) (also know as interval estimates) gives a likely" range of values for…
A: We have the upper limit of interval = 10.3 and lower limit is -4.9
Q: Q1 Market-clearing Prices Consider a standard position auction. There are two positions: Top (T) and…
A: Different parties may bid for the right to buy an item or service at an auction.Auctions are seen to…
Q: Economic sanctions are designed to Presure the government of the aggressor country to negotitate a…
A: In the world economy, the term economic sanction is used to explain the situation when a specific…
Q: Differentiate between oligopoly and pure monopoly.
A: Oligopoly is the market structure in which there are few firms which sell either differentiated or…
Q: We are given the market information of pizza as below: a)Define the market demand equation and…
A:
Q: A loan of $17,300 at 8.3% compounded annually is to be paid off by equal payments to be made at the…
A: Let the equal payments be $X each The Present value of 5 payments of $X discounted at 8.3% p.a.=…
Q: dentify the correct statement. Group of answer choices Demand for a product is the same as the…
A: Demand is another concept of economics related to the purchasing behavior of the consumers and price…
Q: It has been determined that the cost of producing x units of a certain item is 8x + 365. The demand…
A: Revenue is the income earned by selling the product at given price level. Revenue function is the…
Q: The estimated cost of paving and marking the parking lot is $. (Round to the nearest dollar.) The…
A: The estimation of the amount of costs that will be incurred to create a product or construct…
Q: 5. The money multiplier is equal to the reciprocal of the reserve requirement ratio. However,…
A: The answer is as follows:-
Q: How do politics work in organizations? What are the causes, consequences, and ethics of political…
A: Answer -3 This style of politics focuses on using authority to influence organizational…
Q: Economic function for 1) president says more spending will fight recession 2) legislature passes…
A: Economic functions for government refer to the actions of the government to influence the economy as…
Q: A change in the price of gasoline will cause ?
A: In a market x gasoline is one of the widely used resources that can be used for production as well…
Q: There are two approaches to determine profit maximizing level of output: (1) total revenue– total…
A: Total profit is the difference between total revenue and total cost
Q: a. The Singapore Government strongly supports the idea of increasing Singapore's marginal tax rates…
A: Note: We will answer the first question as the exact one was not specified. Please resubmit a new…
Q: The gross domestic product (GDP) of the United States is defined as the market value of within the…
A: The measure that depicts the final value of goods and services that are produced in an economy…
Q: For an IS/LM model of an economy with the following equations: C = 200 + 0.8Yd I = 220 – 25i G with…
A: The IS-LM model takes a different look at how the economy's short-run real gross domestic product…
Q: What are these mismatched trends telling us about how demand and supply work in the market?
A: Oil is the most versatile commodity, being used in everything from plastics to asphalt to fuel in…
Q: Bill's income is $1,000 and his net taxes are $250. His disposable income is Select one: O a. $750 O…
A: After income taxes have been subtracted, disposable income, also known as disposable personal income…
Q: If the price of hot dogs were to decrease, which of the following changes would we expect to occur…
A: Complement goods: The complement goods are those goods that are consumed together and a single…
Q: 4) The net cash flow associated with development and sale of a new product is shown. Determine the…
A: We have given the following cash flow
Q: According to the AS-AD model, which of the following is true about output when there is an increase…
A: "Macro-economic equilibrium is attained at a point where aggregate demand (AD) equates(intersects)…
Q: Suppose that a firm’s emissions and Marginal Abatement Cost (MAC) data are summarized in the table…
A: Permit to Work is a methodical cycle intended to distinguish, convey, alleviate and control risk in…
Q: 21. Suppose that the utility function for nonnegative amounts of money for some risk-averse agent…
A: Two lotteries A and B are given where A gives 36 with certainty and B given 0 with probability p and…
Q: Please explain it briefly and answer it with more then 75 words Why would an international…
A: The answer is as follows:-
Q: In a classroom election, two presidential candidates, namely, Lisa and Teddy, both garnered the same…
A: In the given situation, there are two players, player T and player L, who have won by same number of…
Q: 1. The Environmental Kuznet Curve (EKC) or the inverted U-shaped curve is one of the most popular…
A: Environment protection is needed . Environmental degradation is caused by the anthropogenic…
Q: A man receive 125,000 php credit for his old car when buying a new model costing 875,000 php. What…
A: Introduction Total credit from an old car = 1,25,000 php Credit comes under asset. So this is the…
Q: Find the marginal values for functions a, b, and c given below and evaluate each at Q=100. a) C(Q) =…
A: Have you ever considered how valuable you are to your company? When requesting a raise or promotion,…
Q: Suppose the demand curve is given by P=10-Q and the supply curve by Q=P If the price in the market…
A: Given: Demand Curve : P=10-Q Supply Curve : Q=P Given market price =$7
Q: What if the price at a given time was less than the equilibrium price?
A: Equilibrium occurs at that point where quantity demanded is equal to quantity supplied. The price at…
Q: QUESTION 14 Assume potential GDP is 4,000 and actual GDP is 3,000 if the consumption function is…
A: Full employment refers to the situation where the potential GDP is equal to the real GDP. It means…
Q: Construct a short-run supply function for an entrepreneur whose short-run cost function is C =…
A:
Q: Human Resource Planning(HRP) provides an input into strategic planning in terms of whether the…
A: Human resource planning (HRP) is a continuous, systematic process of foresight planning. It is to…
Q: A newly married couple bought a house and lot worth PHP 1,400,000. They paid a down payment of PHP…
A: Given:- Cost of new house=PHP 1,400,000 Down payment=PHP 280,000 Time=15 years Rate=18%(compounded…
Q: Consider the market for loanable fund. Suppose that government started to give tax incentives for…
A: Answer: If the government started to give tax incentives for investment then the cost of investment…
Q: A manufacturer produces gizmos at a cost of P5 each. The manufacturer computes that if each gizmo…
A: Profit maximization refers to a situation in which a firm is getting maximum profit at producing at…
Q: A life saving medicine without any close substitutes will tend to have (in absolute value, as usual.…
A: A life saving medicine without any close substitutes will tend to have an inelastic demand curve…
Q: a)Find the equilibrium price and quantity in a market whose supply and demand curves are given by…
A: Demand equation depicts the indirect relationship between quantity demanded and price, keeping other…
Q: Explain equilibrium of the firm under perfectly competitive market by choosing output level at which…
A: A competitive firm produces output where P=MC=MR. At this output it earns profit or loss depends on…
Q: 8. Short-run and long-run effects of a shift in demand Suppose that the turkey industry is in…
A: The turkey industry is in long-run equilibrium at price of $5 per pound of turkey and a quantity of…
Step by step
Solved in 3 steps
- We again assume asimple closed economy with GDP of 100 and:c0(autonomous consumption) = 20c1 (marginal propensity to consume) = 0.6I (investment) = 20.a) Now assume that c0falls by 5 (i.e. 5% of GDP), i.e. for any given level of output,consumption will fall by 5. Show the implied fall in the AD function in yourdiagram and show that output will fall by more than 5.b) Show that the multiplier is equal to 2.5, and hence that, in the new equilibrium,output will have fallen by 12.5 (i.e. by 12.5%)c) How big would the impact be if, say, c1 = 0.4 or c1 = 0.8? Explain the difference.An increase of R5 billion in income in a macroeconomy leads to an increase in R3billion in consumption spending. From this information, we can determine that themarginal propensity to save in this economy is:choose the correct answer(a) 0.6; (b) 0.5;(c) 0.3; (d) 0.4If C = 150 + .6Y and I = 50 then a. how much is autonomous consumption,MPC,MPS,Equilibrium level,investiment multiplier b. If investment increases by 50, using the multiplier you found above what will be the change in Y? What will be the new Y (Y2)?
- The table below provides Income and consumption Data in billions of dollars. Answer questions 21-24 based on it.Disposable Consumption SavingsIncome100 80 --------200 150 ---------What is the marginal propensity to save for this economy? a. 0.75 b. 0.50 c. 0.3 d. cannot be determinedThe following questions refer to this table: a.At each level of output, calculate saving. At each level of out-put, calculate unplanned investment (inventory change).What is likely to happen to aggregate output if the economyproduces at each of the levels indicated? What is the equilib-rium level of output?b.Over each range of income (2,000 to 2,500, 2,500 to 3,000, andso on), calculate the marginal propensity to consume. Calculatethe marginal propensity to save. What is the multiplier?c.By assuming there is no change in the level of the MPC andthe MPS and planned investment jumps by 200 and is sus-tained at that higher level, recompute the table. What is thenew equilibrium level of Y? Is this consistent with what youcompute using the multiplier?Consider an economy described by the following equations:Y=C + I +GY=7,000G=4000T=2,000C=150+0.75(Y-T)I=1,000-50ra. In this economy, compute private saving, public saving and national saving.b. Calculate the equilibrium interest rate.c. Now suppose the G rises by 1,000. Compute private saving, public saving, and nationalsaving.d. Calculate the new equilibrium interest rate. Answer only part c and d in this question as I have attempted first two parts already.
- (a) Suppose in a simple Keynesian economy, planned consumption function is given by C=250+0.65(Y-T). Planned investment, government purchases, taxes are $100 million, $100 million and $150 million respectively. What is MPC, MPS and autonomous consumption Derive the saving function. What is the equilibrium level of income? Y= AD=C+I+G If government purchases increase to $150 million, what is the new equilibrium level of income? What level of government purchases is needed to achieve an income of $2000 million? From question e) you get the newly government purchase. Now find out the multiplier value What is the amount of shift in AD curve? [Use the multiplier value from e)] (b) In a self-regulating economy “X”, labor supply is 40 million but labor demand is 10 million. What will happen in goods and service market simultaneously? Explain this situation with relevant graph. Based on your findings in a) is it denoting long run equilibrium? If not, will the economy be able to restore…The tax cuts of 2017 increased the 2018 disposable income of households by roughly $200 billion. If the MPC were 0.65, Instructions: Enter your responses as a whole number. a. how much of this windfall was initially saved? $ billion b. how much AD stimulus resulted over time after all multiplier effects? $ billion When I work through (b), I get the answer of 1300 billion, but it state it is incorrect.Given that the marginal propensity to cinsume is 0.8 and that the initial change in investment expenditure equals $100 million. (a). Calculate and explain the numeric value of the autonomous investment multiplier? (b). Calculate the resultant change in equilibrium national income?
- 4. A country’s consumer spending is defined by the following equation:Consumer spending = 365 + 0.75 (Disposable Income)a. Draw a diagram to represent this equation. b. Assuming no government, what will the Marginal Propensity to Save (MPS) in this country.c. What will be Consumer spending if disposable income in this country is 1000? d. If suddenly this country’s wealth increases, how do you think the equation might change.Also show it in a diagram.Assume a closed economy in which, there is no government. If ouput (income) is 800,autonomous consumption is 100, and marginal propensity to consume is 0.70 in this economy.Then calculate the the amount of consumption spending?1. Consider a model of a goods market in a closed economy that is characterized by the followingequations:Consumption : C = 160 + 0.6(Y −T )Investment : I = 150Taxes : T = 100Government spending : G = 110EQ Output : Y = 1/(1 −c1)[c0 + I + G −c1T](a) Solve for the output in the economy.(b) Compute the sum of private and public saving.(c) Considering your answer to part b and the information given above, is this economy in equilib-rium? Explain.