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A: GDP is the value of final goods and services produced in the economy within a given period of time.
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A: please find below the answer.
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A: Answer: FALSE For example Assume the government invests an additional $100 million and the MPC is…
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A: It is given to us that C=20+4/5yd T=5+1/5Y I = 18 g=20
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Q: The MPC is 0.5. what happens to the real GDP if the government increases spending by $10 million?
A: Given MPC = 0.5 Increase in government spending = $10
Q: GDP Yd C Iplanned Гипрlanned 20 22 30 50 30 80 30 100 70 30 The Macroland's government reduced its…
A: as we know that Yd = C+I(planned)+I (unplanned) so we can complete the table and find the Ans below-
Q: In a simple economy (assume there are no taxes, thus Y is disposable income), the consumption…
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A: GIVEN DATA Our economist estimate that citizens in our country have an MPC of 0.90. To…
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- Calculate autonomous consumption expenditure from the following date about an economy which is In equilibrium.National income = Rs. 1,100Marginal propensity to save = 0.20Investment expenditure = Rs. 80(Autonomous Consumption Expenditure = 1201. Given the following table. Income (RM million) Consumption (RM million) 0 100 100 150 200 200 300 250 400 300 500 350 How much is the autonomous consumption in the economy? How much investment should be increased to achieve an income of RM400 million? Calculate the MPS. Derive the consumption function. 2. Given the following information, C = 500 + 0.7Yd T = 0.2Y I = 400 G = 100 Calculate the national income equilibrium. Based on your answer in (a), draw the aggregate expenditure graph. Suppose that investment changes by 300, what would happen to the national income equilibrium? Suppose that tax (T) changes, and the new T is T = 0.2 Y + 50, calculate the new national income equilibrium. 3. Given the following information, S = -200 + 0.3Y I = 100 Calculate the national income equilibrium by using the Leakage-Injection approach. Calculate the value of saving. Draw the aggregate expenditure graph.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 ?
- The accompanying graph represents the aggregate consumption function for the small island nation of Pineapple Paradise. The people of Pineapple Paradise expect their future disposable income to increase. Use the graph to show an increase in consumption expenditures. What is the new level of aggregate autonomous consumer spending? 1 $1000 2 $3000 3 $2000 4 $4000The following are exogenous (not directly affected by income): G = 9 I = 14 X = M = 0 The consumption function is: C = k + cY, where k = 8, c = 0.6 What is the equilibrium level of GDP? State to ONE decimal place What is the multiplier for this economy? The following are exogenous (not directly affected by income): G = 11 I = 4 X = M = 0 The consumption function is: C = k + cY, where k = 3, c = 0.8 What is the equilibrium level of GDP? What is the multiplier? Same information as in the previous question: The following are exogenous (not directly affected by income): G = 11 I = 4 X = M = 0 The consumption function is: C = k + cY, where k = 3, c = 0.8 Imagine the maximum potential output or real GDP of this economy is 100. Assume that is the same as saying we reach the edge of the PPF at 100. Now assume we want to get that economy from the current level of GDP to its maximum potential of 100. We can do this in two ways - either increase government spending (G) or reduce taxes, (we…The table below shows aggregate expenditure in the short-run, answer the following questions in the spaces provided below Aggregate output (Y) C I G Aggregate Expenditure AE 0 20 30 10 100 100 30 10 200 180 30 10 300 260 30 10 400 340 30 10 500 420 30 10 600 500 30 10 700 580 30 10 1 What is the value of MPC 2 What is the value of MPS 3 What is the value of autonomous consumption (Ca) 4 Write the consumption function 5 What is the amount of equilibrium consumption 6 What is the amount of saving when Y = 200 7 What is the amount of autonomous expenditure 8 What is the amount of equilibrium expenditure 9 What is the size of expenditure Multiplier 10 What is the value of unplanned inventory when Y = 350
- Given the following model of an Economy as follows:- (10 marks) C = 50 + 0.7 Yd (Yd = Y-T) (Consumption & Expend) I = 100 (Investment Expend) X = 20 (Exports ) M = 10 – 0.27 (Imports) T=25 interepret the consumption Function i) Determine Equilibrium level of National Income ii) Consumption level at Equilibrium level of Income iii) Total import at equilibrium IncomeDuring 2019, a country reported that its real GDP increased by $3.0 billion. The multiplier for this economy is known to be equal to 10.Which of the following might have caused the increase in real GDP? Question 12Answer a. Exports increased by $0.3 billion. b. Investment decreased by $0.3 billion. c. Exports decreased by $0.3 billion. d. Imports increased by $0.3 billion. e. Government expenditure on goods and services increased by $3 billion.For the following economy, find autonomous expenditure, the multiplier, short-run equilibrium output, and the output gap. By how much would autonomous expenditure have to change to eliminate the output gap? C = 550 + 0.75 (Y – T ) I p = 200 G = 200 NX = 60 T = 180 Y* = 3,400 Instructions: Enter your responses as absolute numbers. Autonomous expenditure: 875Multiplier: 4Short-run equilibrium output: 3500 There is (Click to select) an expansionary output gap in the amount of 100.(DO THIS PART) Autonomous expenditure would need to decrease by________ to eliminate the output gap.
- In 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? d) How much is the level of savings when income is $2300 million?Consumption expenditures in the U.S. usually account for approximately 40 O 50 O 60 O 70 80 percent of GDP.The table below shows aggregate expenditure in the short-run, answer the following questions in the spaces provided below Aggregate output (Y) C I G Aggregate Expenditure AE 0 20 30 10 100 100 30 10 200 180 30 10 300 260 30 10 400 340 30 10 500 420 30 10 600 500 30 10 700 580 30 10 1 1 Mark What is the value of MPC 2 1 Mark What is the value of MPS 3 1 Mark What is the value of autonomous consumption (Ca) 4 1 Mark Write the consumption function 5 1 Mark What is the amount of equilibrium consumption 6 1 Mark What is the amount of saving when Y = 200 7 1 Mark What is the amount of autonomous expenditure 8 1 Mark What is the amount of equilibrium expenditure 9 1 Mark What is the size of expenditure Multiplier 10 1 Mark What is the value of…
