with the aid of a diagram, explain the income and expenditure model

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

A: The final value of all the services and goods produced in a particular year is known as Gross…

Q: If a Japanese tourist drinks German beer in a hotel in New York City, how will the U.S. GDP be…

A: GDP quantifies the monetary worth of final products and services produced in a nation over a…

Q: An equation for Aggregate Expenditure is: AE = $3600 – 0.8Y, %3D In equilibrium, Income 'Y' =…

A: The aggregate expenditure is the overall expenditure in an economy over a given period of time. The…

Q: Using the 45° degree cross diagram and concepts of aggregate expenditure and aggregate income (GDP),…

A: To explain the expenditure output model which is often called a Keynesian cross diagram depicts the…

Q: Use the information in the table below to answer Q.3.1 to Q.3.3: GDP at market prices R397bn Net…

A: The GNP at market price(MP) shows us the value(in monetary terms) of all the finished goods &…

Q: Explain how to derive total expenditure curve

A: Aggregate expenditure(AE) is indicating the gross domestic production of the country. The GDP can be…

Q: Which of the following will not cause an increase in equilibrium GDP? a) an increase in government…

A: According to the expenditure approach of calculating national income,  Y= C+I+G+NX C is the domestic…

Q: Using the expenditure approach to the measurement of GDP. For each of the following situations,…

A: The expenditures approach, which is the most well-known method of computing GDP, is defined by the…

Q: a. Using the above data, determine GDP by both the expenditures approach and the income approach.…

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

Q: When a business buys a new computer to design its product, this spending is called?   A. Goverment…

A: Expenditure- It is the amount that is spent on something. It is divided into four parts i.e.…

Q: Which of the following best characterizes the circular flow of income? Businesses buy resources from…

A: The circular flow of income model depicts how income flows through the economy between economic…

Q: Calculate GDP using the expenditure approach (Amount in billions of dollars): Corporate profits: $…

A: Expenditure approach GDP formula is as follows :- GDP = Consumption Expenditure + Investment…

Q: An equation for Aggregate Expenditure is: AE = $3600 – 0.8Y, n equilibrium, Income 'Y' = Aggregate…

A: The aggregate expenditure = C+I+G+NX. C= consumption expenditure. I= investment expenditure. G=…

Q: (Aggregate Expenditure) What are the components of aggregate expenditure? In the model developed in…

A: Components of aggregate expenditure are consumption and investment along with net exports.

Q: The figure shows the flows of expenditure and income in an economy. In 2013, Uwas $1.0 trillion,…

A: We are given that U (G) = 1 trillion (Government spending)  V = 2.5 trillion ( Private Saving) W or…

Q: An equation for Aggregate Expenditure is: AE = $3600 0.8Y, In equilibrium, Income 'Y' = Aggregate…

A: Given:

Q: Assume the following model of the expenditure sector:  S=C+I+G+Nx TR=100 C=420+(4/5)YD I=160 G=180…

A: In the expenditure model, Y = C + I + G + NX , since the values are given: Y= 420 + (4/5)[Y –(1/6)Y…

Q: Explain why an economy's income must equal its expenditure.

A: The total expenditure refers to the total amount of money spent by the firm, individual or…

Q: Which of the following is correct? The relationship between the MPS and the MPC is such that: Select…

A: Hi! Thank you for the question as per the honour code, we’ll answer the first question since the…

Q: Explain how gross domestic product is calculated using each of the following: the income approach…

A: Gross Domestic Product ( GDP ) refers to the market value of the final goods and services produced…

Q: Based on tion for each of the following functions? a. Consumption 5. Investment c. Net exports 3.…

A: (A)

Q: In the circular flow of income and expenditure model... O A. the level of Income for factors of…

A: The simplest form of Circular Flow Model consists two sectors, i.e., household sector and firm…

Q: What is the level of aggregate expen level of income? Graph the aggregate expenditures function.

A: Aggregate expenditure is the sum of consumption, investment, government spending, and net exports.…

Q: i) calculate the national income equilibrium ii) based on your answer in (i) show the aggregate…

A: GDP refers to the total value of finished goods and services that produced within the economic…

Q: What are the two approaches to determine the equilibrium level of income in an economy?

A: According to the given question In simple words we can say that equilibrium level income is…

Q: uestion 1: In an economy C = 350 + 0.75 Y is the consumption function where C is consumption…

A: We measure the output of an economy using the gross domestic product. GDP or the gross domestic…

Q: Consider a national income model as: Y= C + I0 + G Y= National Income C= (Planned) Consumption…

A: The expenditure method is a framework for ascertaining total national output (GDP) that investment,…

Q: a) GDP captures all income created in the economy, GDP also captures all expenditures made in the…

A: GDP means total market value of goods and services produced domestically.

Q: The effect of an $100 increase in government expenditure on the equilibrium GDP is greater than the…

A: Government spending:- The money spent by the government on purchasing products and for providing…

Q: Use the information in the table below to answer: GDP at market prices R397bn Net primary income…

A: Net national income at factor cost can be calculated by using the following formula.

Q: rom the following data, determine the equilibrium level of real GDP.

A: Gross domestic product (GDP) is a standard measure of the value added created by a country's…

Q: Which of the following will not cause an increase in equilibrium GDP? a) an increase in government…

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

Q: Definition of GDP and explanation of why this is equal to national income [ an explanation of how…

A: GDP (Gross Domestic Product) refers to the market value of all final goods and services that are…

Q: Using what you know about national income accounting, answer the following: a. Assuming that…

A: Disposable income is the income that is left after paying taxes. It is the income that is used to…

Q: In Macroeconomics, why does total income have to equal total output?

A: A way of measuring the economic wellbeing of a nation, the GDP is the amalgamation of all the values…

Q: Write out and explain the GDP and Aggregate Expenditure identity equations.

A: Answer; GDP - The monetary value of all goods and services produced within a nation's geographic…

Q: In an hypothetical Economy, the consumption function is:- C = 100 + 0.3Y Calculate the value of…

A: According to the above given question, the consumption expenditure is given as:- C = 100 + 0.3Y We…

Q: what do you mean by CIRCULAR FLOW OF GOODS AND INCOME AMONG PRODUCERS AND HOUSEHOLDS

A: circular flow model  Lets understand this concept with an example:- In this circular flow model…

Q: Identify the part of the personal income which is actually available for consumption a. Taxable…

A: Personal income: It means the total earnings of an individual.