Investment ($B) Real Domestic Product, GDP (SB) Refer to the diagrams. Other things equal, an interest rate decrease will O A, shift curve A to the left and shift curve B downward. O B. leave curve A in place but shift curve B downward. OC. shift curve A to the right and shift curve B upward. OD. leave curve A in place but shift curve B upward. Expected Rate of Retum, and Real Interest Rate, I 09 Investment ($8)
Q: In 2016 final sales equal $40o billion, and the change in business inventories is $100 billion. GDP…
A: Information given is:- Final sales = $400 billion Change in business inventory = $100 billion
Q: Without the povermment or the foreign sector in the income expenditure model, planned egte…
A: The aggregate expenditure is the sum of all the expenditures undertaken in the economy by the…
Q: 7. Suppose you have can invest in a project in Country A or Country B. The CPI in both countries is…
A: Given information Country A CPI in 2022=105 Country B CPI in 2022=110 In 2021 CPI=100 in both the…
Q: Theory QUESTIONS (1) Given CD PF of - If A = 25, and a = Q = AK“L-a || /2 %3D - Determine: - AP =…
A: Marginal product of labour means a unit change in labour how much TP will change . Whereas MPK…
Q: Suppose that the economy of the United States has an investment schedule that is reflected in the…
A: There is an inverse relationship between planned real investment and the annual rate of interest.…
Q: Suppose that for a particular economy, nominal GDP in 2015 falls, compared to its previous level in…
A:
Q: The Canadian economy produces a vast array of goods and services, trom cars to cannabis Suppose that…
A: In an economy, GDP is the sum of the components of aggregate demand that are consumption, net…
Q: Which of the following is not one of the three main categories of consumer expenditures? O A.…
A: 1) Residential investment is not one of the three main categories of consumer expenditures. 2) The…
Q: 2. Suppose, • C=0.8(1-t)Y • t=0.25 • | = 900 – 50i • G=800 a) What is the equation for IS curve b)…
A: Answer: (a). To find the equation for the IS-curve let use the following equilibrium condition…
Q: Question 15 B Investment ($B) Real Domestic Product, GDP ($B) Refer to the diagrams. Other things…
A: Curve A shows the negative relationship between rate of return and investment. Curve B is a…
Q: Refer to problem 2. What is the unplanned inventory change when GDP is equal to $2300? * O $40 -$40…
A: When the planned aggregate expenditure is equal to the real GDP will yield equilibrium in the…
Q: Question 23 The immediate determinants of investment spending are the: O A. Level of saving and the…
A: The intermediate determinants of investment spending are the expected rate of return on capital…
Q: Notice that real GOP trends upward over time but experiences ups and downs in the short run. A…
A: Real GDP is a macroeconomic statistic that measures the value of the goods and services produced by…
Q: thetical economy, no investment projects are undertaken when the real interest rate is 12 percent or…
A: We have: If rate of interest is 12% or more, then the quantity of investment is 0 If rate of…
Q: The value of final goods and services equals: Select one: O a. the sum of the value added by all…
A: GDP measures the final value of all goods and services produced in an economy during a given period…
Q: In a closed economy with no government, aggregate expenditure is Select one: O a. None of the…
A: A closed economy is where there is no trade taking place with outside of the economy. It means there…
Q: 2) The production of goods and services valued at current prices is called real GDP. Select one: O…
A: GDP is the gross domestic product which measures value of all goods and services produced in an…
Q: Consider the following Macro model: GDP Y=C+Gl+GP+NX C=120 +0.80Y, G.I-80 G.P=60 Tax 100 NX= -20 Yd…
A: GDP refers to the total value of finished goods and services that produced within the economic…
Q: Consider the following Macro model: GDP=Y=C+GI+GP+NX C=120+0.80Y. G.I=80 G.P=60 Tax=100 NX= -20 Yd =…
A: Multiplier in economics is the factor by which the economic variables get multiplied due to a change…
Q: Which of these items will increase the level of national income? O a. Higher gross output O b. Lower…
A: In an economy, national income include all the domestic income as well as factor income from abroad.…
Q: MACROECONOMICS Topic: Multiplier Investment Problem Cost of bldg.. =5M Gross Revenue = 9.5 M…
A: a. Real interest rate = Nominal interest rate - Inflation rate= 12% - 8%=4%
Q: In 2009 gross investment was $1.9 trillion and depreciation was $2.6 trillion. How much was nết…
A: Investment is an important aspect for the economy. Entrepreneur starts business with other factors…
Q: Assume that nominal GDP is $2,800 billion and the real GDP is $2,000 billion. What is this economy's…
A: The GDP deflator refers to a weighted average of all final product and service prices created in the…
Q: A country has a GDP of $250 billion dollars. The consumption in that country is $30 billion. There…
A: Note: You have uploaded two questions simultaneously. Hence, we shall solve the first question for…
Q: For an economy the following functions have been given: C = 100 + 0.8Y S = -100 + 0.2Y I = 120 – 5r…
A: To find the equilibrium level of income and interest rate we need to equate the LM and IS equations.…
Q: If real GDP is $2200 billion, the GDP deflator is 110, nominal net exports are $100 billion, nominal…
A: Gross domestic product(GDP) measures the money value of all final goods and services produced in an…
Q: If deflation is OCcurring and nominal Gross Domestic Product (GDP) is increasing over time, then…
A: GDP is considered an important factor to evaluate the stability, growth, and performance of an…
Q: 63. Fatima's disposable income increases by $1000, and she spends $600 of it. Fatima's a. MPS is 0.6…
A: The marginal propensity to save is the portion of each extra dollar of income of a household which…
Q: What is the expenditure approach to measuring GDP? The expenditure approach to measuring GDP sums…
A: An expenditure approach is an approach that sums all the spending activities of the economy. These…
Q: Suppose that permanent income is calculated as the average of income over the past five years – that…
A:
Q: 1. Suppose an economy has only two sectors, Goods and Ser- vices. Each year, Goods sells 80% of its…
A: The price of equilibrium is the only value that consumers' expectations and producers' expectations…
Q: Assume the GDP for Lindellland is $500 billion. If investment spending is $100 billion, government…
A: Gross domestic product is the market value of all goods and services produced in the economy in a…
Q: Which of the following statements are correct? Select one or more: O a. Government spending on goods…
A: GDP The Gross Domestic Product (GDP) basically refers to the sum of all the value added in a given…
Q: Consider a simple macro model with a constant price level and demand-determined output. The…
A: As given, C=50+0.35YI=150G=290X=100IM=0.06YTherefore, Aggregate Expenditure=C+I+G+NXwhere, NX=X-IM
Q: 4. An economy has government purchases of 1000. Desired national saving and desired investment are…
A: Full employment is what is happening in which all suitable work assets are being utilized in the…
Q: Given that: Consumption Investment C = 0.7Y +100 I = -40r + 1000 = 4300 |3D Money supply…
A: Money market refers to the financial market in which currencies or liquid assets are traded. Factors…
Q: AD2 AD1 AD3 Real Domestic Product, GDP Refer to the graph. Which of the following changes will…
A: A total demand or domestic last interest is the complete interest for definite labor and products in…
Q: 5.0 4.0 3.0 2.0 1.0 1975 1985 1995 2005 Year In the above figure, which period(s) show deflation? O…
A: Deflation refers to general decrease in price level. Disinflation is the decrease in inflation rate.
Q: GDP in an economy is $23,600 billion. Consumer expenditures are $18,000 billion, corporate profits…
A: GDP = C+I+G+(X-M) Given information: (required as per the formula) GDP= $23,600 billion Consumption…
Q: (1)The following macroeconomic model describes the economy of Sunderland. 1. Y C + I + G + NX Income…
A: a) Equation #2 that is: C = 220+0.63Y It is not fair characterization to refer to the above…
Q: Suppose that net investment in 2016 was $24 billion and depreciation was $4 billion. Gross…
A: Gross Investment is alluded to as the all-out use that is made for purchasing capital merchandise…
Q: Other things remaining the same, the lower the real interest rate, the investment and the is the…
A: The low real interest rate is favorable for consumption and investment expenditure. The aggregate…
Q: QUESTION 19 Transfer payments are O a. excluded when calculating GDP because they only reflect…
A: * ANSWER :- * The OPTION B (excluded when calculating GDP because they do not reflect current…
Q: na small economy, consumption spending is $7,500, government purchases are $2,200, gross investment…
A: GDP is the total market value of goods produced domestically during an accounting year. The given…
Q: QUESTION 13 uppose that inflation in the U.S will be three percent. What is the real interest rate…
A: Question 13. The answer is Option 4. We do not have enough information.
Q: 12 63. Fatima's disposable income increases by $1000, and she spends $600 of it. Fatima's a. MPS is…
A: Formula for MPC=change in consumption/change in income =600/1000=0.6 MPC+MPS=1 Therefore MPS=1-MPC…
Q: 200 700 580 Refer to problem 1. Suppose that potential GDP is $740O, by how much investment should…
A: Given C = 600 + 0.8Yd I = 800 G = 600 NX = 0 T = 700.
Q: Suppose that Annie's real income this year is $150 and next year it will be $100. Assume that the…
A: Incomes Y1=150 and Y2=100 And r=0.1
Q: Quèstion 2 Real Domestic Product, GDP ($B) Investment ($B) Refer to the diagrams. Other things…
A: Curve A is downward sloping that shows the negative relationship between interest rate and real…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- 10) Suppose net taxes are $50 billion. Government spending is $125 billion. Investment is $50 billion and consumption is $100 billion. What is national savings? A) 50 billion B) -50 billion C) 75 billion D) -75 billion.Using the following information, calculate the Net Domestic Product at Factor Cost: Government Final Consumption Expenditure 100 Net Indirect Tax 80 Private Final Consumption Expenditure 300 Consumption of Fixed Capital 20 Gross Domestic Fixed Capital Formation 50 Net import 10 Closing stock 25 Opening Stock 25 a. 410 b. 340 c. 380 d. 42016- Which one of these will be deducted from gross output to determine the net output? a. Intermediate consumption b. Private income c. Factor income from abroad d. Total government spending
- 1 a)What is the value added definition of GDP? What is meant by value added? b) Suppose that in a given year, a company spends € 400 million on intermediate goods, €800 million on wages of employees with no other expenses and makes total sales worth of € 1600 million. What is the value added of this company? c) The government wants to increase absolute savings and successfully incentivizes the people to save more (saving rate goes up). Show is a graph, what happens to equilibrium output. How could increase in savings lead to a paradox. 2.) a) What are the elements within autonomous spending? State the formula for the multiplier b)In the graph below, draw the demand function (Z) including autonomous expenditure. Label the area representing autonomous spending. Add the value of equilibrium output that you calculated in part c. ( images) c)Suppose the following characteristics of an economy: C = 150 + 0.4 YD , I = 270, G = 100, T = 50 Calculate the equilibrium output and mark it…8. KEY QUESTION Below is a list of domestic output and na-tional income figures for a certain year. All figures are in billions. The questions that follow ask you to determine the major national income measures by both the expenditures and the income approaches. The results you obtain with the different methods should be the same. Personal consumption expenditures $245 Net foreign factor income 4 Transfer payments 12 Rents 14 Statistical discrepancy 8 Consumption of fixed capital (depreciation) 27 Social Security contributions 20 Interest 13 Proprietors’ income 33 Net exports 11 Dividends 16 Compensation of employees 223 Taxes on production and imports 18 Undistributed corporate profits 21 Personal taxes 26 Corporate income taxes 19 Corporate profits 56 Government purchases 72 Net private domestic investment 33Net private domestic investment 33 Personal saving 20a. Using the above data, determine GDP by both the ex-penditures and the income approaches. Then determine NDP. b. Now…Those are the production numbers for 3 different years for country B (50pts) Year Price of Bananas $ Quantity of bananas kg. Price of backrubs $ Quantity of backrubs 1 1.00 5 6.00 5 2 1.00 5 6.00 7 3 2.00 10 6.00 9 Calculate real and nominal GDP for year 1, 2 and year 3 when base year is year 1. Compute inflation in country B from period 1 to period 2. Compute inflation rate from period 1 to 3 Compute inflation rate from period 2 to 3 Calculate GDP with Chain weighted method for period 3. Compare the result with the answer in part a.
- 4 National Income at constant prices can be obtained by multiplying current production of output to _______. a. Base year output b. Base year price c. Current prices d. Current taxesAssume there are only two producing sector Y & Z in an economy. Calculate a) Gross value added at market price by each sector b) National income from the followings: Items Amount in Crores Net factor income from abroad- 20 Sales by Y- 1000 Sales by Z- 2000 Change in stock of Z- 200 Closing stock of Y- 50 Opening stock of Y- 100 Consumption of fixed capital by Y & Z- 180 Indirect taxes paid by Y & Z- 120 Purchase of raw material by Y- 500 Purchase of raw material by Z- 600 Exports by Z- 701. Calculate GDP using the Income and Expenditure Approach. (all figures are in billions of dollars): Item Amount ($) Government purchase of goods and services 1,721.6 Exports 1,096.3 Receipts of factor income from the rest of the world 382.7 Depreciation (consumption of fixed capital) 990.8 Net fixed investments 688.2 Corporate income taxes 265.2 Consumption expenditures 6,739.4 Indirect business taxes 664.6 Imports 1,475.8 Payments of factor income to the rest of the world 343.7 Inventory change 56.5 Social security contributions 702.7 Undistributed corporate profits (retained earnings) 130.3 Government transfer and interest payments 1,366.3 Personal interest payments 286.2 Personal taxes 1,235.7
- (a) Explain the difference between government spending and the government Purchases of goods and services . Which is larger? (b) Explain why national income and gross domestic product would be essentially equal if there were no deprecation.What are the differences between national income, personal income, and disposable personal income? Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.Assume there are only two producing sector Y & Z in an economy. Calculatea) Gross value added at market price by each sector b) National income from the followings:Items Amount in CroresNet factor income from abroad- 20Sales by Y= 1000Sales by Z= 2000Change in stock of Z= -200C Closingstock of Y= 50 Opening stock of Y= 100Consumption of fixed capital by Y & Z= 180Indirect taxes paid by Y & Z= 120Purchase of raw material by Y= 500Purchase of raw material by Z= 600Exports by Z= 70