Which one of the following macro-economic variable should be excluded in a Keynesian model of a closed economy without government

Q: Consider a closed economy Keynesian model. An exogenous collapse in private sector investment…

A: The investment comes from the investment in the private sector or the government sector. The…

Q: Keynesian View on the Government’s Role in the Economy: Explain how Keynes concluded that the…

A: The macroeconomic economic theory of total expenditure in the economy and its consequences on…

Q: explain the main macroeconomic objectives that economists use to assess the performance of an…

A: Macroeconomics is the study of an economy's overall behavior and performance.  It concentrates on…

Q: In Keynesian-cross model, Keynesian argue that economy has a potential to attain any equilibrium.…

A: The Keynesian-cross model is the model of income, output and employment. Keynes was one of the most…

Q: Consider the following numerical example of the simple Keynesian model with no government spending,…

A: Here , We consider a simple Keynesian Model with no government spending , taxes or foreign sector:…

Q: Although our development of the Keynesian cross in this chapter assumes that taxes are a fixed…

A: 1. As there is negative relationship between the tax rate and consumption. Higher the tax rate lower…

Q: In the “complete Keynesian model”, the investment functions was I = I0 - f(i). An analyst now…

A: When investment is the function of national income, such investment is called induced investment.

Q: Answer all parts of this question. a) Explain why individuals may try smooth their consumption over…

A: A closed economy is one that doesn't trade with other countries. As a result, the closed economy is…

Q: A- Saving (S), B- Marginal propensity to consume (MPC), C-Marginal propensity to save (MPS), D-…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Shown below is the aggregate expenditures model composed of consumption and investment spending for…

A: Aggregate Expenditure = Consumption + Government Spending + Investment + Exports - Imports The rise…

Q: c. National-Income model: Closed economy i. Aggregate expenditure: AE = C +I + G Note: Exogenous…

A: Natinal income is the total factor in ome earned by the country's normal residents in an accounting…

Q: Q.1 EXPLAIN WHY GOVERNMENT SPENDING IS REGARDED AS AUTONOMOUS IN A KEYNESIAN MODEL WITH GOVERNMENT…

A: NOTE: .We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Q)Name a few macroeconomic problems (4-5 problems). And write down how they arose and briefly…

A: Answer: The macroeconomic problems are the problems that impact the economy as a whole. The four…

Q: ncome... a) ICOR (Incremental Capital-Output Ratio) b) Aggregate demand c) Multiplier d) All answers…

A: The commodity relationship between the quantity that the consumers are willing to buy and that…

Q: 1.6 In the Simple Keynesian Macroeconomic Model, which of the following will determine the level of…

A: Simple Keynesian macroeconomic model refers to the nature of economic growth when there is a change…

Q: The simple (fixed r, fixed P, fixed W) Keynesian model C=300+0.75 YD                  I=310…

A: In a closed economy, aggregate output is the sum of consumption, investment and government spending.…

Q: Which one of the following is true for a Keynesian model in a closed economy without government…

A: The concept of overall expenditure in the market and its impact on productivity, wages, and rising…

Q: c. The government makes no changes to taxes or spending. d. The government decreases spending…

A: If government makes no change in fiscal policy which is under consideration then there would be no…

Q: a) State carefully the key assumptions underlying the Keynesian model of the economy. b) Using the…

A: Keynesian Economics is defined as that branch of economics which emphasizes on the use of government…

Q: Problem 1: You are given the following model for the economy of a country: Consumption function:…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: You are told that taxes in this economy are equal to 100. What is the value of autonomous…

A: Autonomous consumption: Autonomous consumption is defined as consumption spending that occurs when…

Q: in the aggregate expenditure model for a closed economy assuming investment, government spending and…

A: Given In the aggregate expenditure model for a closed economy assuming investment, government…

Q: Consider the following model of an economy operating with fixed wages, prices and interest rates and…

A:

Q: When using the Aggregate Expenditures model (or Simple Keynesian Model) Increasing taxes and…

A: The aggregate expenditure model links spending components (consumption, investment, government…

Q: Which one of the following statements is FALSE?(a) There are four broad groups of decision‐making…

A: Note: Since you've asked multiple question, we will solve the first question for you. If you want…

Q: "ou are provided with the following information about an economy: Government spending, G = $ 50…

A: Equilibrium national income can be determined by equating the aggregate demand with aggregate income…

Q: xplain the keynesian theory of high public spending to stimulate economic grow

A: To get some more context, it is important to understand the evolution of economics. The dominant…

Q: You are given the following information about a closed economy with no government: Consumption = 445…

A: Given: In a closed economy, Consumption : 445+0.75Y Investment : 250

Q: In the Mid-2000's, Spain had a huge housing boom and they also had the highest inflation rate in…

A: Answer: In 2000 Spain had a huge housing boom which means the production took place at a large scale…

Q: n the IS-LM model, an equal increase in government expenditure and tax will ...... , ....... and…

A: In the Keynesian macroeconomic model, IS-LM stands for Investment Saving and Liquidity Choice. The…

Q: The classification of government spending as an investment or having an investment-effect depends…

A: The classification of government spending as an investment or having an investment effect can be…

Q: 2.2 Consider the following functions for a model economy: Consumption: C-C, +c (Y-T) Investment:…

A: Macroeconomics refers to the branch of economics that deals with the performance, structure,…

Q: Question 1 Suppose MPC and the tax rate are both equal to 0.2 for a closed economy. Assuming no…

A: Given tax rate = 20 % MPC = 0.2 MPS =  1 – MPC = 0.8

Q: In the Savings-Investment model, what is the effect of an increase in government spending on…

A: Saving – investment diagram represents if one parameter of this model changes how investment…

Q: Which of the following is not a valid point in debating the merits of increasing government…

A: In the debate about the merits of increasing government expenditures or cutting taxes during a…

Q: Suppose we have the following information for the simple (fixed r, fixed P, fixed W) Keynesian…

A: Equilibrium in the keynesian model is achieved at the point where income is equal to aggregate…

Q: Governments attempt to stimulate economics by offering firms temporary investment tax credits.…

A: The government action is required to correct economic disequilibrium if there is a fall in the…

Q: The simple (fixed r, fixed P, fixed W) Keynesian model C=300+0.75 YD                  I=310…

A: Aggregate expenditure function (closed economy): AE = C + I + G => AE = 300 + 0.75(Y-T) + 310 +…

Q: 1. Which of the following is not an assumption of the simple Keynesian model ?  (a). We are in the…

A: 1. Aggregate output is equals planned expenditure is not an assumption of the simple Keynesian…