Total spending in the Keynesian model of a closed economy without government includes Select one: a. Consumption and Imports b. Consumption and investment c. Investment and government spending d. Imports and government spending
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- Assume an economy where spending for each sector is: Household: C = 800 + 0.95Q Business: I = 3000 Public: G = 4000, Tr = 7000, Tx = 1000 + 0.3Q Foreign: X = 1700, Im = 200 + 0.165Q Solve for Autonomous Spending, Spending Multiplier, Disposable Income, Consumption Expenditure, Household Savings, Imports, Net Exports, Government Expenditure, Budget DeficitThe economy is characterized by the consumption function C = C(Y − T) = 500 + 0.75 (Y − T). If income increases by 100, and taxes increase by 20, then consumption will increase by: 40 80 60 375 Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure.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 andMultiple‐choice questions: Select one correct answer for each of the following. In your answer booklet, write down only the number of the question and next to it, the letter of the correct answer.spending 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.
- 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 05. 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. A) calculate the national income equilibrium.assume the following economy autonomous consumption =£3m marginal propensity to consume= 0.8 business investment = 52 government spending =£127m income tax rate = 40% A. Find equilibrium size of income Y. B. Identify whether the government runs a budget deficit or a budget surplusAssume that a three sector economy in country W the amount of autonomous consumption is RM 300 million with the proportion of increase in income that is spent on consumption is 0.5 an induced tax of 20% is amount of government spending is RM 150 million Requirements Caluclate the national income equilibrium
- Assume that total expenditure E comprises the sum of government consumption, G, household consumption, C, and investment, I. Assume a closed macroeconomic system, so that income equals expenditure Y=E. If we define household saving, SH, as SH=Y-T-C, where Y is national income and T is total taxation, which of the following will be true? a. SH=I+G b. SH=I-G-T c. SH=I+(G-T) d. SH=IGovernments attempt to stimulate economics by offering firms temporary investment taxcredits. Explain the effects of this measure on investment spending. Would you expect apermanent or temporary measure to have more effect?Saving function = S=- 500 + 0.25 Y, I = 400 - 1250 i Ms = 1200, Mt = 0.20 Y, Mp = 0.05 Y and Msp = 500 - 1300 i a) Calculate Y and i equilibrium b) If the government increase its expenditure by 100, what is the rate of national income growth and how many percent the effectiveness of this policy? c)Draw the graph completely.
- MPC and MPS measure changes in consumption expenditure and saving that result from changes ?. A. expected inflation. (b) disposable income. (c). expected future income. (d)governmente expenditure on goods and services.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. A) explain what would happen to the national income equilibrium if the invesment changes by rm100 million(a) Are national income statistics a good way to compare the standard of living between different countries? Is there a better approach that could be used? (b) Why is Irish GDP always larger than Irish GNP and which is a better measure of the health of the Irish economy? (c) Which do you believe is the most important government macroeconomic objective? Justify your answer.