Given the following closed economy model: C = .8Yd + 800 I = 1000 G = 6000 T = .25Y + 100 Yf = 21,000 The size of the fixed tax cut (ΔT0ΔT0) needed to restore a full-employment level of GDP is: Use an integer value and no dollar sign.
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Given the following closed economy model:
C = .8Yd + 800
I = 1000
G = 6000
T = .25Y + 100
Yf = 21,000
The size of the fixed tax cut (ΔT0ΔT0) needed to restore a full-employment level of
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- Based on the data in the table and graph below, identify the equilibrium GDP: Price Level Real GDP/Output in $ billion Real GDP/Spending in $ billion 80 100 180 90 120 160 100 140 140 110 160 125 120 170 115 130 175 105 140 178 100 Group of answer choices $160 billion $100 billion $140 billion $40 billionBased on the data in the table and graph below, identify the equilibrium GDP: Price Level Real GDP/Output in $ billion Real GDP/Spending in $ billion 80 100 180 90 120 160 100 140 140 110 160 125 120 170 115 130 175 105 140 178 100Distinguish between the following concepts as they apply to Elements of Macroeconomics. Give examples to support your answers a. Nominal GDP and Real GDP b. Procyclical variable and Countercyclical variable
- Inflationary GDP is the amount by which equilibrium real GDP falls short of the full employment level of GDP. True or FalseIn a simple frugal economy, if there are unplanned depletions of inventory, then the economy's actual amount of aggregate output/income is greater than its equilibrium amount, and the economy will contract. True or FalesFind national income from the following Autonomous consumption $100 Marginal propensity to consume $0.60 Investment $200
- With lockdowns currently imposed across Europe and North America until mid-April, even in the best-case scenario it will take at least until mid-June for market confidence to be restored in these economies. The implication is that nearly six million workers in Bangladesh’s formal sector – which is largely manufacturing – will be without steady work for an extended period.” a) Which part of the production function do you think the issue mentioned above will affect? Draw two diagrams to show Real GDP and LRAS is affected in the long run. The government should also consider an unconditional cash transfer program for an initial period of three months at a rate of $95 per month, which corresponds to the minimum wage for the formal sector in Bangladesh. This would cost the government roughly $14 billion, or 4% of GDP. While this sort of cash transfer program always suffers from targeting issues, Bangladesh enjoys a highly sophisticated mobile financial services network, which could…Potential real GDP is defined as: Group of answer choices The quantity of output that the economy can produce when it is above the natural rate of unemployment. The quantity of output that the economy can produce when it is at less than potential employment of its resources. The macro equilibrium The quantity of output that the economy can produce when it is at full employment of its labor and physical capital.Within the classical model, explain in detail how an increase in autonomous investment due toseveral signs of a strengthening economy affects the level of output, employment and price level.Use graphs of a loanable fund market and AD-AS to support your answer.
- In our modern economy, the adjustment process necessary to eliminate a recessionary gap is very rapid. True or FalseAfter government is added to the income-expenditure model, the formula for the aggregate consumption function is Group of answer choices C = a - b(T - Y). C = a + b(Y + T). C = a - b(Y - T). C = a + b(Y - T).Read the following extract and answer questions?South Africa’s economy grew by 1.1% in the first quarter of the year Stats SA has published the latest gross domestic product (GDP) data covering the first quarter of the year, showing that the economy grew by 1.1% in the first three months of 2021.The growth follows a revised 1.4% rise in real GDP in the fourth quarter of 2020. On an annualised basis, theeconomy grew 4.6% quarter-on-quarter. Following confusion caused by the annualisation of GDP data in 2020 – amid the Covid-19 pandemic andresulting lockdowns – Stats SA said it would no longer use the annualised data as the headline GDP statistic. During periods of steady economic growth, annualising is a useful way of expressing quarter-on-quarterperformance in annual terms, Stats SA said. However, during periods of economic instability, annualising can be misleading, because it exaggerates growth rates that are unlikely to be repeated. Given the information about the South African…
