Refer to the information provided in Table 8.7 below toanswer the questions that follow.Table 8.7All Figures in Billions of DollarsAggregate Output200Aggregate Consumption300Planned Investment1004004501006006001008007501001,000900100Refer to Table 8.7. Planned saving equals plannedinvestment at an aggregate output levelSelect one:a. of $800 billion.b. of $1,000 billion.c. of $600 billion.

Aggregate output Aggregate consumption Planned investment Planned savings 200 300 100 -100 400…

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ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter13: Capital, Interest, Entrepreneurship, And Corporate Finance

Section: Chapter Questions

Problem 1.1P

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1. According to the Bureau of Economic Analysis, during therecession of 2007–2009, household saving as a fraction of dis-posable personal income increased from a low of just over1 percent in the first quarter of 2008 to 5 percent in the secondquarter of 2009. All else equal, what impact would this changein saving have on the MPC, MPS, and multiplier? How wouldthis change affect equilibrium output when planned invest-ment changes? 2. Assume in a simple economy that the level of saving is –500 whenaggregate output equals zero and that the marginal propensity tosave is 0.2. Derive the saving function and the consumption func-tion, and draw a graph showing these functions. At what level ofaggregate output does the consumption curve cross the 45° line?Explain your answer and show this on the graph.
If C = 1,500 + 0.75 Y and /= 500, then planned saving equals planned investment at aggregate output level of Select one: 2,666.67. 10,000. 20,000. 8,000.
The table below provides Income and consumption Data in billions of dollars. Answer questions 21-24 based on it.Disposable Consumption SavingsIncome100 80 --------200 150 ---------What is the marginal propensity to save for this economy? a. 0.75 b. 0.50 c. 0.3 d. cannot be determined
table below shows levels of employment, output, consumption, and saving for a private closed economy. Possible Levels of Employment, Millions Real Domestic Output,Billions Consumption,Billions Saving,Billions 40 $ 240 $ 244 -$ 4 45 260 260 0 50 280 276 4 55 300 292 8 60 320 308 12 65 340 324 16 70 360 340 20 75 380 356 24 80 400 372 28 Instructions: Enter your answers as a whole number. Using the consumption and saving data above and assuming planned investment is $16 billion, answer the following questions: a. What are saving and planned investment at the $380 billion level of domestic output? Investment = $ billion
6) If the marginal propensity to save is 0.4 and disposable income decreases from $2,000 to $1,000, saving will A) increase by $80. B) decrease by $80. C) decrease by $400. D) increase by $400. Note:- Please refrain from offering handwritten solutions. Please ensure that your response maintains accuracy and quality to avoid receiving a downvote. Take care of plagiarism. Answer completely. You will get up vote for sure.
personal 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.
PLEASE ONLY ANSWER QUESTION FOUR (i am giving you the others as context) (i need this by 11:55pm tonight, so in like 25 minutes, so please hurry!!) ANSWER THIS ONE: 4. Based on the answer to the previous question (question #3), if half of those government expenditures are financed through lump sum taxes, calculate the new level if NI? (C+I+G) HERE ARE THE FIRST THREE QUESTIONS AS CONTEXT: 1. Calculate the MPC in the above diagram. 2. Based on Diagram 1, If private Investment of $100 is added to the existing C, calculate the new equilibrium level of NI. 3. Given your answer to the previous question (question #2) calculate by how much G should change, if the full employment level in the economy is at $3000.
Refer to the information provided in Table 8.9 below to answer the questions that follow. Table 8.9 All Figures in Billions of Dollars Aggregate Output Aggregate Consumption Planned Investment 160 20 200 240 20 300 20 400 400 20 500 20 100 320 480 Refer to Table 8.9. Planned saving equals planned investment at an aggregate output level of Select one: a. $500 billion. b. $400 billion. c. $200 billion. d. $300 billion
If C = 150 + .6Y and I = 50 then a. how much is autonomous consumption,MPC,MPS,Equilibrium level,investiment multiplier b. If investment increases by 50, using the multiplier you found above what will be the change in Y? What will be the new Y (Y2)?
An increase of R5 billion in income in a macroeconomy leads to an increase in R3billion in consumption spending. From this information, we can determine that themarginal propensity to save in this economy is:choose the correct answer(a) 0.6; (b) 0.5;(c) 0.3; (d) 0.4
(a) Suppose in a simple Keynesian economy, planned consumption function is given by C=250+0.65(Y-T). Planned investment, government purchases, taxes are $100 million, $100 million and $150 million respectively. What is MPC, MPS and autonomous consumption Derive the saving function. What is the equilibrium level of income? Y= AD=C+I+G If government purchases increase to $150 million, what is the new equilibrium level of income? What level of government purchases is needed to achieve an income of $2000 million? From question e) you get the newly government purchase. Now find out the multiplier value What is the amount of shift in AD curve? [Use the multiplier value from e)] (b) In a self-regulating economy “X”, labor supply is 40 million but labor demand is 10 million. What will happen in goods and service market simultaneously? Explain this situation with relevant graph. Based on your findings in a) is it denoting long run equilibrium? If not, will the economy be able to restore…
61)If the marginal propensity to save is 0.2, then a $10,000 decrease in disposable income will Select one: a. increase consumption by $2,000. b. increase consumption by $8,000. c. decrease consumption by $8,000. d. decrease consumption by $2,000.

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