The table below shows the parameters for the economy of Hutu. Give your answers to one decimal point - 170 - 0.1Y C= 100 + 0.6Y I- 180 G = 250 a. The value of equilibrium income is $ 1400 b. If exports were to increase by 50, the new value of equilibrium income would be $ c. Given your answer in part (b), the new value for XN is S

The table below shows the parameters for the economy of Hutu. Give your answers to one decimal point - 170 - 0.1Y C= 100 + 0.6Y I- 180 G = 250 a. The value of equilibrium income is $ 1400 b. If exports were to increase by 50, the new value of equilibrium income would be $ c. Given your answer in part (b), the new value for XN is S

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter15: Gross Domestic Product

Section: Chapter Questions

Problem 10SQP

See similar textbooks

Similar questions

The italian economy can be characterized by equation below Equation C = 300 + 0.8Yd G = 400 T = 200 I = 200 Refer to equation the equilibrium level of output for the italian economy is Select one: $3,145 $3,800 $3,700 $2,850
Explain how the removal of online purchase taxes on ICT devices may effect a country's national income.
Consider a hypothesis economy described by the following equation C=100 I=1200 X-1110 M=200+0.25Y T=250+0.3Y Required 1.Compute the equilibrium level of the national income 2.The level of consumption income after tax and net exports that corresponds to the equilibrium level national income
Using the domestic goods demand and net exports graphs, illustrate graphically and explain the effects of a decrease in taxes on output, exports, imports, and net exports. Label all the curves, the initial and new equilibrium points.
Use the information in the table below to answer Q.3.1 to Q.3.3:GDP at market prices R397bnNet primary income payments to the rest ofthe worldR37bnIndirect taxes R23bnSubsidies R11bnConsumption of fixed capital R32bn Q.3.2 Calculate the value of net national product (NNI) at market prices.
Solve for the following (provide solutions) 1. Equilibrium Output (Y*) 2. The consumption level corresponding to the equilibrium output (C*) 3. The level of imports corresponding to equilibrium output (M*)
You are given the following information about an economy : Gross private domestic investment =. 40Government purchase of goods and Services. =. 30 Gross national product ( GNP). =. 200Current account balance. =. -20 Taxes. =. 60Government transfer payment to thedomestic private sector. =. 25Interest payment from the governmentto the domestic private sector. =. 15Factor income received from rest of world. =. 7Factor payment made to rest of world. =. 9 Find the following, assuming that government investment is zero. : a) consumptionb) Net exportc) GDPd) net factor payment from abroade) private savingf) government savingg) national saving
Use the AE model to explain and show the impact of an autonomous fall in the value of goods exported to China by Australia. (You can assume the fall is constant across all levels of real GDP). Be sure to discuss in detail, the process by which this fall is transmitted through the economy. Now after this fall in exports is worked through, explain and show the impact of an autonomous fall (of lesser magnitude than for exports) in the value of goods imported by Australia from China. (You can assume, as before, that the size of the fall is constant across all levels of real GDP). Again, be sure to discuss in detail, the process by which this fall is transmitted through the economy.
Use the information in the table below to answer Q.3.1 to Q.3.3:GDP at market prices R397bnNet primary income payments to the rest ofthe worldR37bnIndirect taxes R23bnSubsidies R11bn Consumption of fixed capital R32bn Q.3.3 Calculate the value of net national income (NNI) at factor cost.
Which one of the following statements is FALSE? (a) There are four broad groups of decision‐making units in the economy:households, firms, government and the foreign sector;(b) Savings are an important injection into the circular flow of income andspending in the economy;(c) Taxes are a leakage or withdrawal from the flow of income and spending in the economy;(d) Spending by households on consumer goods and services is calledconsumption spending.
Consider a macroeconomy where the current population is 800 thousand people. Gross domestic private investment is constant $2500 million while consumer expenditure is described by the equation: C = 580 +0.8DI. The government is fairly active, with a total expenditure of $2000 million andnet taxes of $2550 million. Further investigation of the macroeconomy reveals that imports are constant at $3000 million while exports are constant at $2500 million. Currently, the overall price level (GDP deflator) is 118 and the potental GDP level is $13.5 billion.(Question4 of 7)Now, consider that the government decreases taxes by 7.5%. While the change had a direct impact on the economy, other market conditions led to an unanticipated change in the economy. Specifically, imports decrease by 7.5%. At the same time, given the birth rate, mortality rate, and net migration, the economy experienced a 0% change in its population.1. As a result of these events, what is the current equilibrium level of GDP?…
Given the marginal propensity to consume = .75 and marginal propensity to import = .15, then we should expect (ceteris paribus) that an autonomous reduction of net exports = - $100 will Group of answer choices reduce GDP by $400. reduce GDP by $50. not affect the level of GDP. reduce GDP by $100. reduce GDP by $250.