Given the information in essay question (2). Assume that planned investment increases by 50, calculate the increase in equilibrium output. Edit View Insert Format Tools Table 12pt v Paragraph V
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Assume consumption is represented by the following function: C=400+0.75Y. Also assume that planned investment (I) equals 100 and there are no government or taxes.
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- Assume an economy can be modeled with these equations: C = 210 + b Yd, I = 200, G = 103 - 0.054 Y, X = 280 M = 305 and T = -40 + 0.29Y. What is the value of b when the multiplier on Investment is 1.867? the answer is 0.73You are an economic advisor to the government. Discuss your opinion . a) How COVID-19 pandemic will affect the consumption behavior as well as the investment done by the firms and household for the next two years? b) What are the actions or policies that the government can implement to face this situation? please answers with analysis and --graph (if possible)Advanced analysis) Assume the following consumption schedule: C = 20 + 0.9Y, where C is consumption and Y is disposable income. At a(n) $1,200 level of disposable income, the level of saving is
- Yd Consumption Expenditure $ 0 $ 4,000 $ 10,000 $ 12,000 $ 20,000 $ 20,000 $ 30,000 $ 28,000 $ 40,000 $ 36,000 $ 50,000 $ 44,000 Calculate equilibrium level of income if autonomous Investment of $6,000 was made.Calculate Mr William's Income, Existing Investible assets and expenditure from the information above.Equation for consumption is C=40/(0.8Y) where Y= yearly income = $400. A) what is the level of consumption B) what is the average propensity to consume
- Assume a closed economy where the level of investment is 300 and savings function is s = -30+ 0.15y calculatr the equilibrium level of incomepersonal consumption expenditures (C) and disposable income (Y d): Year C Y d1 300 400 2 500 700 a. Compute the marginal propensity to consume. b. Compute the amount of savings for years 1 and 2. c. Compute the marginal propensity to save.The table below provides income and consumption data in billions of dollars: Disposable Income Consumption Savings 100 80 --- 200 150 --- What is the level of consumption when income is $300 billion? A) $200 billion B) $240 billion C) $210 billion D) $60 billion
- 3. If the consumption function is C= $200 billion + 0.9Y, a) How much do consumers spend with income of $3 trillion? b) How much do they save?Output/Income Consumption Savings MPC MPS APC APS 0 80 0-80 = -80 - - - - 100 140 100-140 = -40 0.6 0.4 1.4 -0.4 200 200 200-200=0 0.6 0.4 1 0 300 260 300-260=40 0.6 0.4 0.8666666667 0.1333333333 400 320 400-320=80 0.6 0.4 0.8 0.2 a. Assume Y= 400 Calculate the level of Consumption Hint: plug in 400 for Y into the Consumption and Savings equations, Also, calculate the following APC (C/Y); APS (S/Y) b. Calculate the Multiplier 1/(1-MPC) c. Assume Y= C + I + G + X I=20; G=30 X=0 Use the equation derived in (d) above; use this to Plug in the value of C into the equation. I=Busines Investments G= Government Spending X=Net exportsFor an economy the following functions have been given:C = 100 + 0.8YS = -100 + 0.2YI = 120 – 5rMs = 120Md = 0.2Y – 5rCalculate the following:5.1.1. IS equation 5.1.2. LM equation 5.1.3. Equilibrium level of income 5.1.4. Equilibrium level of interest rate. 5.1.5 Calculate National saving. 5.1.6 Calculate money demand 5.1.7 Find consumption