The slope of the aggregate expenditure curve equals the change in * O Planned expenditure divided by the change in real GDP O Autonomous expenditure divided by the change in real GDP O Government expenditure divided by the change in real GDP Real GDP divided by the change in planned expenditure
Q: The economy of a country is characterized by the following equations: Aggregate consumption function…
A: aggregate consumption determines aggregate saving, because saving is defined as the portion of…
Q: Consider a simple economy in which investment is constant and equal to $100 billion. There is no…
A: Since you have asked a question with multiple sub-parts, we will solve the first three sub-parts for…
Q: The consumption function for a closed economy with no government sector is given by the equation: C…
A: C = 200 + 0.8Y Note:- we have taken all the parts separately no parts are connected with each…
Q: (1) Consumption function: C = 100 + .8Y, (2) Planned investment: I = 38 (3) Government spending: G =…
A: C=100+0.8Ydi=38g=75EX=25IM=0.5YdT=40AE=C+I+G+EX-IMEquilibrium Income:…
Q: The mpc and mps measures charges in consumption expenditure and savings that result from changes in…
A: The MPC and MPS measures changes in consumption and savings that result from changes in income.…
Q: Assume autonomous consumption is Gh¢ 400 million, autonomous investment is Gh¢ 300 million and…
A: i.) Equilibrium national income: Equilibrium national income can be calculated as follows: Thus,…
Q: Autonomous consumption = R100m Investment spending = R300m Government spending = R200 million…
A: please find below the answer.
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A:
Q: If the economy is growing along the same path as potential GDP, the expenditure line will not shift…
A: In the mentioned question, the reaction of expenditure curves asked when there is growth in the…
Q: 16. Calculate autonomous consumption expenditure from the following data about an economy which is…
A: Autonomous consumption is a consumption which is occurs even at zero income level so here we find…
Q: The slope of the aggregate expenditure curve equals the change in * Planned expenditure divided by…
A: In Keynesian macroeconomics, the aggregate demand plays an important role in stabilizing the economy…
Q: . If the consumption function in an economy as follows C = 50 + 0.75Y and the following variables…
A: Given information: C = 50 + 0.75Y investment = 250 MJD Government expenditure = 200MJD Net…
Q: Which on is incorrect a) the level of autonomous consumption is determined by the non income…
A: The incorrect statement is: investment spending is the most stable component of aggregate spending…
Q: Suppose that the level of GDP increased by $100 billion in a private closed economy where the…
A: Answer: Let us first find the expenditure multiplier. The expenditure multiplier increases the level…
Q: autonomous consumption expenditure is $50 billion, investment is $200 billion, and government…
A: Since there are more multiple questions, we will answer only first three.
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A: The macroeconomic equilbrium in an economy occurs when the aggregate demand and aggregate supply are…
Q: 1. Consider an economy with the following characteristics: Autonomous part of consumption…
A: Aggregate expenditure is the sum of consumption, investment, government spending and net exports.
Q: Autonomous consumption = R100m Investment spending = R300m Government spending = R200 million…
A: Answer: Autonomous spending: autonomous spending is the spending that is independent of income…
Q: Given the following set of equations for an economy model: Consumption expenditure Investment C =…
A: Y = C + I +G + M Y = (A* + b YD) + I* -lr + M Y = A* + b (Y - T* - tY ) + I* - lr + M* + mY Y = A*…
Q: Figure 8.4 TE 45 TES C+I+G3+(Xx-IM). TE2 =Cz+I+G+(x-IM): TE: =C+I+G+(X-IM): Y3 y Which of the…
A: Total expenditure is the sum of consumption Expenditure , investment expenditure , government…
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A: The aggregate expenditure refers to the amount of the money spent on the consumption, investment,…
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Q: (a)Elaborate THREE (3) determinants in which consumption can be increased…
A: Note: As per the guidelines we’ll answer the 1st question. Please submit a new question by…
Q: Consider an economy where the various components of expenditure follow these equations: C = 10 +…
A:
Q: QUESTION 4 The figure below shows the planned Aggregate Expenditure function for a hypothetical…
A: The aggregate expenditure function is AEp=1000+0.5Y This is ex-ante or planned expenditure. The GDP…
Q: The slope of the aggregate expenditure line is always this slope equals the than 1. If there are no…
A: Aggregate expenditure is the sum total of consumption, planned investment, government purchases, and…
Q: Marginal propensity to consume (mpc = c = AC/AY): the change in consumption expendi- ture caused by…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: When real GDP is zero, investment is $2.0 trillion, government expenditure is $1.5 trillion, exports…
A:
Q: n the below table, C is consumption expenditure, Iis investment, G is government expenditure, and NX…
A: a)The equilibrium level of real GDP: Real GDP(Y)=C+I+G+NX Real GDP(Y)=Aggregate Expenditure(AE) So,…
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A: The equilibrium level of the national income refers that when the aggregate supply and the…
Q: The economy is in equilibrium such that Planned Aggregate Expenditure (AE) = Aggregate Output (Y) =…
A: The aggregate demand which would be equal to the output would result in macroeconomic equilibrium…
Q: Suppose a simple economy has no government, so that the aggregate expenditure function is: AE = C…
A: AE = C + 1 + X - 1M c = 160 + by Consumption schedule passes through (0,160) and (40, 180) Slope…
Q: When real GDP is greater than Yo in the diagram above: O A Inventories will decrease OB. Aggregate…
A: Equilibrium is the point where aggregate expenditure equals income In goods market income must…
Q: Which of the following is true of aggregate expenditure? It is the sum of all injections plus…
A: In economics, aggregate expenditure is the current value of all the finished goods and services in…
Q: In a simple economy (assume there are no taxes, thus Y is disposable income), the consumption…
A: Given C = 200 + 0.75Y Investment = 300 In closed economy, Y = C + I Y = 200 + 0.75Y + 300 0.25Y =…
Q: The graph shows the consumption function. Consumption expenditure (billions of 2012 dollars) 525-…
A: Consumption Function is the sum of autonomous consumption and product of disposable income with…
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A: Disclaimer : as you posted multipart question we are supposed to solve only the first 3 as per the…
Q: Answer the following questions concisely. Differentiate aggregate expenditure from consumption…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: D00 crore Q.22. In an economy, C = 1000 + 0.75Y is the consumption function, where C is consumption…
A: The total income (Y) of a consumer comprises of consumption spending (C) and the savings (S).
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A: (i) The tax imposed is: 0.2Y The consumption function is: C = A + bY = 300 + 0.5Y
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- In an economy, autonomous consumption expenditure is $50 billion, investment is $200 billion, and government expenditure is $250 billion. Exports are $500 billion and imports are $450 billion. Assume that net taxes and imports are autonomous and price level is fixed. a)What is the consumotion function? b)What is the equation of the aggregate expenditure curve? c)Calculate equilibrium expenditure. d)Calculate the multiplier. e)If investment decreases to $150 billion, what is the change in equilibrium expenditure ?Determine aggregate expenditures (AE) in this economy when real GDP (Y) is equal to $1,500 billion, $2,000 billion, and $2,500 billion.When Y = $1,500 billion, AE = billion .When Y = $2,000 billion, AE = billion . When Y = $2,500 billion, AE = billion .The economy of HOYA has a spending mulipilier of 4. Based only on this information, we know that in HOYAO. Every one point change in R will change spending by 4O. An $80 decrease in investment will reduce GDP by $20O. A $10 increase in not exports will lead to a $40 income equilibrium GDPO. $25 increase in goverment purchase will increase equilibrium consumption by $100
- Consider a 4-sector economy, the consumption spending is C = 500+0.75(Y-T), taxes are T = 10 + 0.2Y, and imports are M=0.2Y. Planned investment is Ip=300, government spending is G=250, and exports are X=10. What is the slope of the planned aggregate expenditure (PAE) line? a) 0.7 b) 0.5 c) 0.6 d) 0.3 e) 0.4The ratio of the change in GDP to an initialchange in aggregate expenditures (AE) is thea. spending multiplier.b. permanent income rate.c. marginal expenditure rate.d. marginal propensity to consume.(a)Elaborate THREE (3) determinants in which consumption can be increased according to the consumption function. (b)Assume that a three-sector economy in Country W. The amount of autonomous consumption is RM300 million with the proportion of an increase in income that is spent on consumption is 0.5. An induced tax of 20% is imposed by the country. The amount of investment is RM250 million, and the amount of government spending is RM150 million. (i)Calculate the national income equilibrium. (ii)Based on your answer in (i), show the aggregate expenditure graph. (iii)Explain what would happen to the national income equilibrium if the investment changes by RM100 million.
- Given an economy is currently producing at $1.47 GDP, natural rGDP is $1.67, and the MPC is 0.94, then the multiplier for increases in aggregate expenditures is: A (round to ane decimal point). This means the federal government should increase its expenditures by A (whole number) billion dollars.a)What will the multiplier be given the MPS values below? Fill in the table with your answers. Instructions: round your answers to 2 decimal places. MPS Multiplier 0.0 0.4 0.5 1.0 b) What will the multiplier be given the MPC values below? Fill in the table with your anwers. MPC Multiplier 1.0 0.9 0.75 0.5 0 c) How much of a change in GDP will result if firms increase their level of investment by $ 8 billion and the MPC is 0.80? ( Enter your answers as whole numbers) How much of a change in GDP will result if firms incresese their level of investment by $ 8 billion and the MPC instead is 0.67?1. In using the expenditure approach to GDP, consumption.... 2.The long -run aggregate supply curve is ? 3. National saving equals private saving plus government saving ,which inturn equals? 4. The mpc and mps measures charges in consumption expenditure and saving that result from changes in ? 5. The sum of the components aggregate expenditure that are not influence by real GDP is called ?
- n the below table, C is consumption expenditure, Iis investment, G is government expenditure, and NX is the net exports. All entries are in million dollars. (SHOW THE STEPS OF CALCULATIONS) a) What is the equilibrium level of real GDP? b) What is the slope of the aggregate expenditure function? c) What is the unplanned inventory change when GDP is equal to $2200 million?Table 2 shows elements in the national income accounts of an economy. Assume the economy is currently in equilibrium. elements billions Consumption (total) 80 Investment 9 Government Expenditure. 6 Imports 15 Exports 8 C) If national income now rises by £22 billion and as a result, the consumption of domestically produced goods rises to £80 billion. Calculate the marginal propensity to consume (MPC). D) What is the value of the multiplier? E) Comment on the results in part (c) and (d).Assume autonomous consumption is Gh¢ 400 million, autonomous investment is Gh¢ 300 million and marginal propensity to consume is 75%. Use income expenditure approach to calculate; I) the equilibrium national income Ii) the multiplier III) assume further that autonomous investment changes to Gh¢ 700, find the new equilibrium national income