The spending of businesses on buildings and other real property is a part of _. а. Government expenditures b. Private expenditures С. Private consumption
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- From the given data calculate the investment expenditure 1) Equilibrium level of income = 5000 2) Consumption = 250QUESTION TWOSuppose that the economy of Mwaliteta Republic has the following data for some economic variables. Assume that Mwaliteta Republic has a population of 500,000 people.Variable Amount in million ZMWExpenditure on Non-durable goods 98Non-residential fixed investment 79Central government expenditure 60Local government expenditure 82Expenditure on durable goods 82Expenditure on services 99Export expenditure 60Inventory Investment 5Depreciation 4Property income from abroad 12Indirect taxes 12Residential fixed investment 42Personal income tax…Classify each of the following items as a final good or service or an intermediate good or service, and identify which is a component of consumption expenditure, investment, or government expenditure on goods and services. A. A textbook bought by a student B. A computer purchased for a senator's office C. New cars bought by Hertz, the car rental firm D. Aluminum sheets bought by Boeing 1. A is a final good that is consumption expenditure, B is a final good that is government expenditure, C is a final good that is investment, and D is an intermediate good. 2. A is a final good that is investment, B is an intermediate good, C is a final good that is investment, and D is an intermediate good. 3. A is a final good that is consumption expenditure, B is an intermediate good, C is a final good that is consumption expenditure, and D is a final good that is investment. 4. A is a final good that is consumption expenditure, B is a final good…
- Use the data provided in the consumption schedule below for the nation of Nevets to answer the following questions. Disposable income (Billions of 2012 dollars) Consumption Expenditure (billions of 2012 dollars) 0 90 100 160 200 230 300 300 400 370 500 420 Which of the following is a CORRECT statement? Explain why.1. There are dis-savings at income levels of 400 and 500 billion dollars.2. The break-even level of income is 400 billion dollars. 3. Savings of 30 billion occurs at an income level of 200 billion dollarsAn economy is described by the following equations: C= 2,000 + 0.75 (Y – T) Ip= 900 G= 2,000 NX= 200 T= 2,000 Y*= 15,000 What is the Autonomous expenditure in the economy?Question 1: In an economy C = 350 + 0.75 Y is the consumption function where C is consumption expenditure and Y is national income. Investment expenditure is 4,000. a) Calculate equilibrium level of income. b) Calculate consumption expenditure.
- In an economy S = -60 + 0.2Y and the invesment is 5000 calculate the 1)Equilibrium level of the income 2)Consumption expenditure at equilibriumCalculate the value of consumption expenditure from the following:- National income = $6000 Autonomous consumption = $1000 Marginal propensity to consume = 0.80In the economy of Kwartengland, the following figures are given for economic activity which was undertaken in 2013. All the figures are million Ghana Cedis Consumption Expenditure = 1000 + 0.8 YD Investment Spending= 600 Government Expenditure = 2450 Personal Taxes= 100 Exports= 100 Imports= 150 1. Calculate the equilibrium real GDP for the economy 2. What is the level of consumption at the equilibrium level of GDP 3. Calculate the investment and tax multipliers 4. By how much should exports change if government wishes to increase real GDP by 1000?
- Suppose in the economy of Richlandia the GDP in 2021 was $ 150 billion. Also, assume that gross investments was $ 40 billion, personal consumption expenditure was $ 80 billion and net exports was -20 billion. What was the value of government spending in Richlandia in 2021? A. $ 0 B. $ 10 billion C. $ 50 billion D. $ 30 billionIn 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) c) What is the unplanned inventory change when GDP is equal to $2200 million? d) How much is the level of savings when income is $2300 million?U.S. business inventories increase Business inventories in the United States rose 0.4% in July after no change in the prior month. An increase in inventories adds to gross domestic product while a decrease subtracts from it. Source: U.S. Department of Commerce, September 13, 2019 Explain why an increase in inventories adds to gross domestic product but why it matters whether an increase in inventories is planned or unplanned. A planned increase in inventories _______. A. decreases investment, which decreases equilibrium expenditure and real GDP B. increases investment, which increases equilibrium expenditure and real GDP C. shifts the AE curve upward, so firms decrease production and real GDP decreases to reach equilibrium expenditure D. shifts the AE curve downward, so firms decrease production and real GDP decreases E. increases consumption expenditure, which increases equilibrium expenditure and real GDP An unplanned increase…
