If the consumption function is given by the equation C = 500 + 0.5Y, the production function is Y = 50KO.5L0.5 where K = 100 and L = 100, then C equals Select one: a. 1,000 cross out b. 2,500 cross out c. 3,000 cross out d. 5,000 cross out e. 6,000 cross out
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- Hello I need help to find the answer for my econ 101 hw for a question as follows: Assume that the production function for a country is given by ?=√K and annual investment is given by the function ?=?×? where γ=0.270, and that the yearly depreciation rate is 4.50%. Suppose that this year, the output in the country is 1, and a neighbor country's output is 50% higher. Calculate the time it would take for the country's output to catch up with its neighbor's output. Assume the neighbor country's economy is neither growing nor shrinking. I will be also attaching the original problem for your reference as I just need to find the time that it would take the country's output to catch up with its neighbor's output. Thank You and please refer to the image to further assist with the question that I want answered.Given the following consumption function C = $450 + 0.8(Yd), autonomous consumption is equal to _______, while the marginal propensity to consume is equal to ________. a. 0.8Yd; $450 b. $450; 0.2 c. 0.8; $450 d. $450; 0.8Describe how the endogeneity versus exogeneity of consumption expenditures (i.e., the household sector) affects the size of predicted output multipliers by an input-output model.
- (Table: Individual and Aggregate Consumption Functions) According to the tableIndividual and Aggregate Consumption Functions, autonomous consumption in theaggregate consumption function is:Consumption Function Suppose that a country's consumption function is given by C=(9\sqrt(I)+0.8\sqrt(I^(3))-0.3I)/(\sqrt(I)) where C and I are expressed in billions of dollars. (a) Find the marginal propensity to save when income is $25 billion. (b) Determine the relative rate of change C with respecy to I when income is $25 bilion.True/False: Suppose that in the graph showing L (in the x-axis) and MPL (in the y-axis), the MPL function is a horizontal line (zero slope). This means that the production function is increasing. true or false?
- An economy has an aggregate production function to produce goods and services Y = AK1/3L 2/3 where Y represents total output (i.e GDP), K is capital, L is labor, and A is total factor productivity (TFP). This economy devotes a share of 30% of its output to gross investment. Capital depreciates at a rate of 10% per period. The TFP level is one and there are 2 units of labor available for production. • Suppose the economy starts with a capital stock at time t = 1 equal to 1 unit. Write down the values of gross investment, net investment, capital, consumption, and output observed during the subsequent 10 periods • What is the steady state level of capital, assuming A = 1 and L = 2? • Suppose that the economy is at its steady state and there is an increase in the depreciation rate from 0.10 to 0.15. What is the new steady state value for capital? Discuss your results.A firm can produce according to the following production function: Q = F(K,L) = 20K^0.4L^0.6 What is the MPL equation? Please show stepsIf consumption function is C = 500 + 0.8Yd. Then, autonomous consumption is ____________.
- Suppose that the production function is given by Y=AK0.4N0.6. What is the percentage change in output if TFP declines by 12%? Write the answer in percent terms with up to two decimals (e.g., 10.22 for 10.22%, or 2.33 for 2.33%).Using this Intertemporal Budget Constraint how can you solve for C2 (consumption in period 2). Consider the macroeconomic model of a two-sector economy (i.e. no government or trade) using standard notation. Assume that the consumption function is linear, i.e. of the form: C = a +bY . It is known that when ? = 110, the value of consumption, C , is equal to 160.8, and that when ? = 170, the value of C is 207.6. (a) Determine the consumption function and derive the savings ( S ) function for the model. What is the marginal propensity to consume? (b) Determine the equilibrium level of national income when planned investment ? = 255.