Answered: What is the name of the expenditures…

What is the name of the expenditures made independent of income level? a) Autonomous export B) Autonomous spending NS) Total expenditure D) Autonomous investment TO) Autonomous import

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter24: The Aggregate Demand/aggregate Supply Model

Section: Chapter Questions

Problem 42CTQ: On a microeconomic demand curve, a decrease in price causes an increase in quantity demanded because...

See similar textbooks

Related questions

Q: in 2019 fiscal year estimated that Ghanaians saved 20 percent of their disposable income; however,…

A: Economy is in equilibrium where Aggregate Expenditure = Aggregate Income . AE = C + I + (G-T)…

Q: 3. Consider the following statements. If P./ P, increases and a country exports cloth, production of…

A: The exchange of goods between individuals and entities for a specified payment is known as trade.…

Q: Gross Domestic Product equals $1.2 trillion. If consumption equals $690 billion, investment equals…

A: Gross domestic product: Gross domestic product or GDP is an standard measure which includes the…

Q: How to calculate GDP by spending method in a closed economy? A) C+I+G B) C+I+G+NX C) C+G…

A: A closed economy refers to the one that do not make trade activities with the other nations in the…

Q: The table given below reports the value of real GDP and its components consumption (C), investment…

A: At equilibrium Y = C+I + G +X -M where C is consumption I is investment G is government spending X…

Q: QUESTION 12 A country is closed. It has no government sector, and its aggregate price levels and…

A: The equation Y = C + I + G + NX tells us that aggregate output (or aggregate income) is equal to…

Q: 52)Consider the following consumption function: C = 800 + 0.75 YD for the fictitious economy of…

A: Tax can be defined as a financial charge or obligation that is imposed on the tax payer by the…

Q: 25. In a country called Disney World, in 2020, GDP amounted to $7,000; consumption amounted to…

A: Government purchases include any spending by federal, state, and local agencies, with the exception…

Q: 8. The income-expenditure model Consider a small economy that is closed to trade, so its net exports…

A: Using the given information, the equilibrium level of income is:

Q: Answer the following questions: Instructions: Enter your answers rounded to the nearest whole…

A: Given : MPC = 0.9 Increase in investment by $11 billion

Q: If C=20 I= 30 G=10 NX=-15 MPC=2/3 T= 30% T=0.3Y What is the equilibrium level of output Y for which…

A: The equilibrium real output and price are determined by the interaction of aggregate demand and…

Q: Q3. In a simple economy, suppose that all income is either compensation of employees or profits.…

A: "GDP or Gross Domestic Product measures the market value of all the final goods and services…

Q: Which of the following equation represents GDP measured by the components of demand Group of answer…

A: GDP is the value of final goods and services produced in the economy within a given period of time.

Q: A reduction in personal income taxes increases Aggregate Demand through a. an increase in private…

A: Aggregate demand is the economic concept that helps in understanding the quantity demanded by all…

Q: 4. Consider the long-run theory of investment, saving, and growth. Which of the following statements…

A: In the long term, a rise within the demand for investment pushes up the charge per unit and…

Q: 19 Earnings such as wages, interests and dividends by residents who are living in other countries…

A: Domestic Product refers to the production of goods and services done within the nation's borders.

Q: Consider the following consumption function: C = 800 + 0.75 YD for the fictitious economy of…

A: A fiscal multiplier provides the constant value by which iteration occurs in the process of…

Q: 8. The income-expenditure model Consider a small economy that is closed to trade, so its net exports…

A: Answer to the question is as follows :

Q: Consider an economy similar to that in the preceding question in which investment is also $200,…

A: GDP refers to the total value of all the final good and services that produced within the economy…

Q: Fluctuations in investment: are larger during expansions than during recessions. account for little…

A: Economic fluctuations are almost impossible to predict with much accuracy. Investment fluctuates…

Q: 24. From a macro perspective, high income, mass-producing nations (such as the United States and…

A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…

Q: Autonomous Consumption R535m Marginal propensity to consume is 0.75 Investment Spending R322m…

A: C=C0+cYd C=Consumption C0=Autonomous Consumption C=Marginal propensity to consume Yd=Disposable…

Q: In the country of Borealis, the minimum amount of consumption spending that will occur is $300 -…

A: C=300+0.75Y I=100 G=100 X=M=T=0

Q: aggregate expenditures of the hypothetical country shown includes $2 billion in investment…

A: GDP = gross domestic product AE= C+I+G+X-M GDP = Y AE = aggregate expenditure C = consumption I =…

Q: Autonomous Consumption R535m Marginal propensity to consume is 0.75 Investment Spending R322m…

A: Formula to get equilibrium output is Y = C + I + G + X + M Where, C = Consumption I = Investment G =…

Q: 15. Explain why for countries with a large spending rate (such as the United States), errors in…

A: Answer-

Q: 14- According to the Figure 12, what could be the reason of increasing in the slope of IS curve and…

A: 14. IS curve is the investment savings curve which is downward sloping as it has negative relation…

Q: A. Place each of the following transactions in one of the four components of expenditure:…

A: The economies around the world tend to focus on their economic growth, and development through…

Q: 3)Consider the following consumption function: C = 800 + 0.75 YD for the fictitious economy of…

A: Consumption function includes autonomous consumption and the induced consumption. Autonomous…

Q: 29. Suppose that household consumption is $1,000, investment is $600, government spending is $300,…

A: Given that Household consumption expenditure =$1000 Investment expenditure =$600 Government…

Q: The aggregate expenditures of the hypothetical country shown includes $2 billion in investment…

A: Hello. Since your question has multiple parts, we will solve first question for you. If you want…

Q: Suppose that the level GDP increased by $100 billion in a private closed economy where the marignal…

A: Multiplier = 1/MPS = 1/ 1-MPC ∆GDP = Multiplier X ∆AE ∆AE - Change in level of Aggregate expenditure…

Q: n the above table, at the $410 billion real domestic output (RGDP) level, which of the following…

A: GDP is the gross domestic output of an economy which is the value of all the final goods and…

Q: AE 225 200 175 150 45 100 200 300 Aggregate output ($ millions) Figure 8.9 Refer to Figure 8.9. How…

A: The aggregate expenditure is the summation of the consumption expenditure, investment expenditure,…

Q: 16) Given that China has a larger GDP than GNP, you will expect that A) income earned by foreigners…

A: The value of products and services generated inside a country's boundaries, by residents and…

Q: If personal income taxes are increased, disposable income and consumption increase. stay the…

A: An increment in annual charges decreases extra cash and hence diminishes utilization (yet by however…

Q: Based on the data in the table and graph below, identify the equilibrium GDP: Price Level Real…

A: At equilibrium price, quantity demanded is equal to quantity supplied. At equilibrium level of…

Q: Consumption function: C = 250 + 0.8Y Investment spending: I = 150 Government spending: G = 500…

A: Given that, Consumption function: C = 250 + 0.8Y Investment spending: I = 150 Government spending: G…

Q: Consider the following hypothetical data for the U.S. economy in 2020 (in trillions of dollars), and…

A: Solution: a) Gross Domestic Product: It refers to the monetary value of the goods and services…

Q: Based on the following statistics, how much is consumption? Total spending Investment Government…

A: Consumption is the quantity of final commodities that residents are willing to purchase for meeting…

Q: The document showing the income and expenses of the state together is called X.” In his statement,…

A: In an economy, different statements or accounts are used to keep record of different activities such…

Q: 12. Assume that the economy is initially at its equilibrium level of GDP (Y). Assume that Ilp, G, T…

A: Given, Planned investment fall = 20 Government spending rise = 30 Rise in Tax = 10

Question

36-

: What is the name of the expenditures made independent of income level?

a)	Autonomous export

B)	Autonomous spending

NS)	Total expenditure

D)	Autonomous investment

TO)	Autonomous import

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

21) Assume that with existing tax and spending laws, government spending exceeds government tax revenues. To cover the resulting shortfall, the government must: A) increase consumers' incomes. B) print more money. C) Borrow money in the financial markets. D) lower interest rates. 22) Gross Domestic Product (GDP) is defined as the market value of: A) all goods and services sold during the year by domestic and foreign producers. B) all final consumer goods produced during the year by domestic and foreign suppliers. C) all intermediate goods produced during the year by domestic and foreign suppliers. D) all final goods and services produced within the boundaries of an economy during the year by domestic and foreign-supplied resources. 23) In the equation GDP = C + I + G + F, in which F equals net export spending (i.e., total spending on exports minus total spending on imports), imports are subtracted from the other types of expenditures because: A)…
10 In the expenditure approach, the total expenditures of the following entities are calculated, except a. Gross taxable incomes b. Gross private domestic investment c. Government expenditures d. Net Exports
ACTIVITY 4: Assessment Assume that a country has a closed economy that has only three goods/services. That is, there is no trade with other countries, so the economy has consumption, investment, and government spending, but no net exports. Each year, the economy produces three haircuts that cost $10 each two factory machines that cost $100 each one highway repair that costs $500 1a. What is total GDP for this economy? 1b. What percent of GDP is consumption? 1c. What percent of GDP is investment? 1d. What percent of GDP is government spending?…
16- Which one of these will be deducted from gross output to determine the net output? a. Intermediate consumption b. Private income c. Factor income from abroad d. Total government spending
28- How to calculate GDP by spending method in a closed economy? A) C+I+G B) C+I+G+NX C) C+G D) C E) C+I
#6. Which of the following is not correct? a Gross domestic product is both total income in an economy and total expenditures on the economy’s output of goods and services. b In a closed economy net exports are zero. c National saving is the sum of private saving and public saving. d Purchases of capital goods are excluded from GDP.
2. Which of the following is more likely to be effective in increasing the growth rate of real GDP? temporary cuts in income taxes permanent cuts in business taxes a one-time personal income tax rebate All cuts in taxes are equally likely to increase the growth rate of real GDP
On a microeconomic demand curve, a decrease in price causes an increase in quantity demanded because the product in question is now relatively less expensive than substitute products. Explain why aggregate demand does not increase for the same reason in response to a decrease in the aggregate price level. In other words, what causes total spending to increase if it is not because goods are now cheaper?
Suppose the economy is operating at potential GDP when It experiences an increase in export demand. How might the economy increase production of exports to meet this demand, given that the economy is already at full employment?
1. In the above case study, identify TWO factors that are responsible for the rise in Japan’s Gross Domestic Product (GDP)
Q)1- From the following table, calculate GDP, GNP, Net national product, National income, Personal income and Disposable personal income In millions of dollars __________________________________________ Transfer payments1500 Subsidies 500 Social insurance payments3500 Depreciation 5000 Receipts of factor income from the rest of the world 400 Government consumption and investment7500 Imports 5000 Payments of factor income to the rest of the world 500 Personal interest income from government and households3500 Indirect taxes2000 Exports6000 Net private domestic investment 10000 Personal taxes6000 Corporate profits4500 Personal consumption expenditures 25000 Dividends 400 _______________________
8- India and China are the two major economies in the Asian continent. Both countries have a trillion-dollar GDP. Suppose to calculate the GDP of the year 2021, India has decided to use the prices and quantities of the year 2021 whereas China decided to use the prices of 2020 and quantities of 2021. You are required to answer the following. a) What the strategy adopted by India to calculate the GDP of the country. b) What the strategy adopted by China to calculate the GDP of the country. c) Which strategy is better? Why?