EBK ECONOMICS: PRINCIPLES AND POLICY
13th Edition
ISBN: 9781305465626
Author: Blinder
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Question
Chapter 37, Problem 3TY
(a)
To determine
Find equilibrium GDP, the budget deficit or surplus, and the
(b)
To determine
Changes in exports and imports when currency appreciates.
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Suppose that the following equations describe the economy of the country of the Philippines.C= 500 + 0.8 (Y – T), I= 200, G= 300, NX= 50, T= 200, Yf= 5000; where C=consumption level, I=investment, G=government expenditures, NX=net exports, T=taxes and Yf=full employment output/income.Use this information to find each of the following:4.1. Investment, government and tax multiplier.4.2. Equilibrium output/income.4.3. The output gap.4.4. By how much would government expenditures have to change to eliminate the output gap?
Consider the following table showing the breakdown of GDP (in billions) for
China.
GDP Category Amount (in billions)
Wages and Salaries 1000
Consumption 1700
Investment 700
Depreciation 50
Government Expenditure 100
Taxes 300
Exports 50
Imports 40
Income receipts from rest
of the world
10
Income payment to rest of
the world
50
1. What are net exports for China?
2. Suppose that GDP in Japan is 1030 and then grows to 1160 (all numbers in
billions) what is the growth rate of GDP in Japan?
This question has four parts. (its not a writing assignment, just asking for a numerical value or simple answer)
1.1. What is the US GDP for the first quarter and second quarter of 2020? What is the personal consumption expenditures for the first quarter and second quarter of 2020?
Go to the website for the Bureau of Economic Analyses (BEA): https://www.bea.gov/
Section 1: Domestic Product and Income; Table 1.1.5
1.2. Use the information in Table 1 to analyze aggregate expenditures (AE) model below (Figure 1. Equilibrium in a Private Closed Economy). (table 1 and figure 1 are in the attachments)
1.3. Identify the mistake and explain why the graph of the aggregate expenditures line does not correctly illustrate the economy's equilibrium.
1.4. Create a graph for the aggregate expenditures (AE) model using the data from Table 1: A Private Closed Economy.
Tips: Remember, the 45degree line (also known as the Keynesian Cross) is a tool that shows how differences in aggregate…
Chapter 37 Solutions
EBK ECONOMICS: PRINCIPLES AND POLICY
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