Refer to the information provided in Figure below to answer the question that follow, AE2 AE, 2,000 700 400 45° 2,000 A Aggregate output ($ billions) Refer to Figure What is the value of Point B? Aggregate expenditures ($ billions)
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- 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= 70Assume: PQ = $2.00 PL = $2.00 PK = $4.00 K MPK MP/PK MRP/PK L MPL MP/PL MRP/PL 1 28 7 14 1 15 5 10 2 24 6 12 2 12 4 8 3 20 5 10 3 9 3 6 4 12 4 8 4 6 2 4 5 8 2 4 5 3 1 2 6 4 1 2 6 1 0.5 1 7 2 0.5 1 7 0.5 0.25 0.5 8 1 0.25 0.5 8 0.25 0.13…Assume: PQ = $2.00 PL = $2.00 PK = $4.00 K MPK MP/PK MRP/PK L MPL MP/PL MRP/PL 1 28 7 14 1 15 5 10 2 24 6 12 2 12 4 8 3 20 5 10 3 9 3 6 4 12 4 8 4 6 2 4 5 8 2 4 5 3 1 2 6 4 1 2 6 1 0.5 1 7 2 0.5 1 7 0.5 0.25 0.5 8 1 0.25 0.5 8 0.25 0.13…
- Assume: PQ = $2.00 PL = $2.00 PK = $4.00 K MPK MP/PK MRP/PK L MPL MP/PL MRP/PL 1 28 7 14 1 15 5 10 2 24 6 12 2 12 4 8 3 20 5 10 3 9 3 6 4 12 4 8 4 6 2 4 5 8 2 4 5 3 1 2 6 4 1 2 6 1 0.5 1 7 2 0.5 1 7 0.5 0.25 0.5 8 1 0.25 0.5 8 0.25 0.13…Consider the following NIPA data for 1Q2021 (First Quarter 20210 $ billlion) Investment: Non Residential $2,948.3 Exports $2,305.3 PCE Goods $5,183.5 Investment: Residential $1,043.7 Government Expendiures Federal $1,557.0 PCE Services $9,857.7 Imports $3,152.3 Governemnt Expenditures : State and local Goernent Expenditures $2,395.9 Change in private inventories -$90.1 2a. Compute the weights of each of PCE, GPDI, NX and GOV) in GDP 2b. Consider the following rates of change (%) for each of the above items. % change PCE 10.70% GPDI -5.00% NX -6.80% GOV 6.30%The following data relates to the economy of a country over a one-year period. K’B Subsidies ………………………………………… 1 000 Gross domestic fixed capital formation……………. 2 400 Exports of goods and services ……………………. 2 000 Government final consumption ……………………. 3 000 Property income from abroad …………………… 300 Imports of goods and services ……………………. 2 500 Value of physical decrease in stocks …………… 10 Consumer’s expenditure ……………………. 8 000 Capital consumption/Depreciation ………………… 1 500 Taxes on expenditure……………………………... 1 750 Property income paid abroad ……………………. 500 Required Calculate the following from the above data: (a) Gross domestic product at market prices (b) Gross domestic product at factor cost (c) Gross national product at factor cost (d) Net national product at factor cost
- (a) Suppose the price level in an economy rises while the money wage rate remains constant. What happens to the quantity of real GDP supplied. How will this affect the aggregate supply or aggregate demand curve? What if the potential GDP increases? Which aggregate curve is affected and how? (b) Real GDP Consumption Planned Investment Government Purchases Net Exports $1,000 $1,000 $100 $150 -$50 2,000 1,900 100 150 -50 3,000 2,800 100 150 -50 4,000 3,700 100 150 -50 From the table data provided, answer the following questions. The numbers in the table are in billions of dollars. Show all calculations. a. What is the equilibrium level of real GDP? b. What is the Marginal Propensity to Consume? c. What is the multiplier value in this economy? d. If potential GDP is $4,000 billion, is the economy at full employment? If not, what is the condition of the economy? e. If the economy is…Assume the information below to answer the following questions about the land of POGO. Assume a 2% interest rate on all interest-bearing Pogo assets (assets issued by Pogo), and a 3% interest rate on Foreign assets (issued by Foreign). All figures below are listed in ‘Pogo’ dollars. B = Billion. POGO CONSUMER EXPENDITURES, 2020: $290B POGO INVESTMENT EXPENDITURES, 2020: $125B POGO GOVERNMENT EXPENDITURES, 2020: $25B TAXES COLLECTED BY THE POGO GOVERNMENT: $18B MERCHANDISE EXPORTS, GOODS & SERVICES TO FOREIGN, 2020: $45B MERCHANDISE IMPORTS, GOODS & SERVICES FROM FOREIGN, 2020: $65B POGO LABOR INCOME FROM ABROAD, 2020: $5B INCOME PAID TO FOREIGNERS WORKING IN POGO, 2020: $12B FOREIGN ASSETS OWNED BY PRIVATE CITIZENS OF POGO, START of 2020: $100B POGO ASSETS OWNED BY PRIVATE CITIZENS IN FOREIGN AT THE START of 2020: $50B RESERVES OF FOREIGN NON-INTEREST BEARING ASSETS HELD BY THE CENTRAL BANK OF POGO AT THE START OF 2020: $298B RESERVES OF FOREIGN NON-INTEREST BEARING…A new factory in a small town has an annual payroll of $6 million. It is expected that 60% of this moneywill be spend on the town will by factory personnel. The people in the town who receive this money areexpected to spend 60% of what they receive in the town, and so on.(a) What is the total of all this spending (called the “total economic impact”) of the factory on the towneach year?(b) How much additional spending will be generated by a 10 million dollar tax rebate if 60% of allincome is spent?
- Economics a) Discuss the determinants of aggregate consumption and aggregate investment. Base onhistorical Australian data, which tends to fluctuate more – investment or consumption? You must also answer why it does this, Data must be sourced. (500 Word count) b) Suppose bad economic stats led investors to be more negative about futureprospects on earnings on investment projects. With the help of diagrams, review theimpact of this change on aggregate consumption and income. Word limit 6001. Assume that the economy is in a steady state and there is an unexpected permanent increase in the rate of depreciation δ. Using the appropriate diagram show: a. What is the best response to this change? b. Does consumption initially increase or decrease?Suppose Ford produced 10,000 Mustangs in the United States in 2016 and during 2016 sold 7,000 to U.S. customers and exported 2,000 to foreign buyers. How many Mustangs would the BEA count as investment spending by Ford in 2016? A) 10,000 B) 9,000 C) 7,000 D) 1,000 Only typed Answer
