Given the following: consumption = 400, investment = 100, government expenditure = 50 and net export = 20, what is the economy’s equilibrium GDP?

Q: Given the following: Ca = $450, Ig = $250, Xn = − $10, and G = $30, what is the economy’s…

A: Equilibrium GDP is given by the aggregate of Consumption, Investment, Government Expenditure.

Q: The table below provides Income and consumption Data in billions of dollars. Answer question below…

A: Here, the given table shows the consumption level at different income levels in an economy.

Q: That tax increases (note: with no change in transfer payments) will change government spending, net…

A: Taxes are unintended fees placed on individuals or companies and levied by a government agency –…

Q: What is the effect on aggregate expenditure if the value of exports exceeds the value of imports in…

A: Aggregate expenditure is the expenditure which all the factors undertake during a specific period of…

Q: Suppose MPC = 0.75. If the government increases spending by $100 billion, Workers get $100 billion…

A: MPC stands for marginal propensity to consume that is the percentage of extra addition to the income…

Q: how will the different components of aggregate expenditure be affected by the increase in government…

A: The economics as a study is based upon the basic idea that resources which are present with the…

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

A: Expenditure incurred by the consumers for consumption irrespective of their income is termed as…

Q: If MPC in an economy is 0.73 and consumption spending increases by $1,172, what will overall GDP…

A: MPC is the marginal propensity to consume which is the percentage of change in consumption spending…

Q: Using the 45° degree cross diagram and concepts of aggregate expenditure and aggregate income (GDP),…

A: To explain the expenditure output model which is often called a Keynesian cross diagram depicts the…

Q: Discuss which of the following fall into the categories of consumption, investment, government…

A: GDP is a macroeconomic measure used in the computation of the aggregate total output produced in an…

Q: Which of the following will not cause an increase in equilibrium GDP? a) an increase in government…

A: According to the expenditure approach of calculating national income,  Y= C+I+G+NX C is the domestic…

Q: If the economy is net importer, what will that do to the aggregate expenditure function and…

A: The change in aggregate expenditure function and the equilibrium level of real GDP when economy is…

Q: Suppose real GDP is $5,361 billion, taxes collected by the government are $528 billion, government…

A: Formula:

Q: ace each of the following transactions in one of the four components of expenditure: consumption,…

A: The expenditure components are : Consumption, Investments, Government expenditure and export. The…

Q: ns) Expenditure (billions) 65.5 65.0 60 61.8 64.5 -0.5 62.1 64.0 61 62.4 63.5 -1.5 62.7 63.0 62 63.0…

A: an option is incorrect because, with GDP higher than Aggregate expenditure at 65, firms tend to have…

Q: A. Place each of the following transactions in one of the four components of expenditure:…

A: "Since you have asked a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Fluctuation of savings and investment rates impact on GDP of any macroeconomics. Comment with the…

A: GDP or the gross domestic product is the value of all the final goods and services which are newly…

Q: You are given the following information about an economy. C=20+0.8(Y-T) 1=100 G=520 T=0.25Y and…

A: Equilibrium GDP is denoted to be as that level of the output whose certain level of the production…

Q: What is the effect on aggregate expenditure if the values of exports exceeds the value of imports in…

A: Answer: Introduction: Aggregate expenditure: it refers to the sum of consumer spending (C), producer…

Q: In a closed economy (no imports or exports), Aggregate Expenditure 'AE' is defined as the sum of…

A: Answer: Given values: Y = $1265 C = $660 I = $325 To find: G (government expenditure) Formula to be…

Q: Why are changes in inventories included as part of investment spending? Suppose inventories declined…

A: GDP is a macroeconomic measure that is used to determine the total aggregate production in a…

Q: If economists forecast a decrease in aggregate expenditure, which of the following is likely to…

A: Aggregate expenditure is the overall spending generated by forces in the market for a given period.

Q: Given the following: Ca = $100, Ig = $50, Xn = − $10, and G = $30, what is the economy’s equilibrium…

A: GDP = C + I + G + NX  C - Consumption  I - Investment  G - Government expenditure  NX - Net export…

Q: In the above table, C is consumption expenditure, / is investment, G is government expenditure, X is…

A: Real GDP C I G X M 100 75 25 95 10 1 200 150 25 95 10 2 300 225 25 95 10 3 400 300 25 95 10…

Q: In the country of Borealis, the minimum amount of consumption spending that will occur is $300 -…

A: C=300+0.75Y I=100 G=100 X=M=T=0

Q: he following are the components of aggregate demand EXCEPT,   A) government spending. B)…

A: The Answer is given below

Q: Which component of GDP will increase if disposable income increases

A: The Gross Domestic Product (GDP) measures the market value of all the final goods and services…

Q: consumption function of a hypothetical Economy is given as:- C = 100 + 0.6Y Calculate the value of…

A: Marginal Propensity to consume alludes to the rate change in utilization for each one dollar of…

Q: Suppose that GDP was $250 billion in year 1 and that all other components of expenditures remained…

A: GDP stands for gross domestic product which is the sum of value of all goods and services produced…

Q: Consider a closed economy in which total output equals $13,000. The economy also has the following…

A: Given : In a closed economy, Total Output = $13000 Consumption=$6500 Government Spending = $ 2500…

Q: A. Place each of the following transactions in one of the four components of expenditure:…

A: The economies around the world tend to focus on their economic growth, and development through…

Q: Given the following: Ca = $100, Ig = $50, Xn = − $10, and G = $30, what is the economy’s equilibrium…

A: GDP = C + I + G + NX  C - Consumption  I - Investment  G - Government expenditure  NX - Net export…

Q: Explain the differences between actual GDP and potential GDP and support your answer by graph.

A: Potential GDP measures the value of production of goods and services that an economy is capable to…

Q: Based on The Aggregate Expenditure Model, what affects the level of consumption (five factors); and…

A: Aggregate expenditure is the total amount or prices charged for the goods and services produced and…

Q: If Full employment GDP is greater than equilibrium GDP, the economy is facing

A: Full employment GDP is the maximum level of GDP that can be attained in the long run. Equilibrium…

Q: “If taxes and government spending are increased by the same amount, there will be no effect on…

A: Answer: FALSE For example Assume the government invests an additional $100 million and the MPC is…

Q: Suppose the economy is initially at a point where real GDP equals potential GDP. In the following…

A: Answer in Step 2

Q: Given the following, Ca = $500, Ig = $250, Xn = − $10, and G = $30, what is the economy’s…

A: GDP = Consumption + Investment + Government expenditure + net export

Q: Calculate investment expenditure from the following data about an economy which in equilibrium:…

A: According to question we are given that  National income = $1000 Marginal propensity to save =$0.25…

Q: Place each of the following transactions in one of the four components of expenditure: consumption,…

A: GDP by Expenditure Method = personal consumption Expenditure + Gross private Investment + Government…