Homework Answers
A.The 45° line represents aggregate expenditure such that AE=AD.
Answer-AD.
B.C+II is consumption and investment and they are parts of AD.
Answer-Aggregate Demand.
C.Economy is in equilibrium when AD=AE.Equilibrium output=400
Answer-400
D.HI is excess of aggregate expenditure over aggregate demand which creates excess inventory.
Answer-Excess inventory
E.Savings is in deficit when investment is more than savings.
Answer-Excess intended investment
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complete a-e please
QUESTIONS 1. Answer the following questions based on the figure below a. The...
QUESTION 18 In Figure 9-1, income level E is the level at which Consumption, savings, Intended...
QUESTION 18 In Figure 9-1, income level E is the level at which Consumption, savings, Intended Investment > * - JA E Net National Income intended investment is less than savings and aggregate demand exceeds aggregate supply, intended investment is less than savings and aggregate demand is less than aggregate supply. intended investment is greater than savings and aggregate demand is less than aggregate supply intended investment is greater than savings and aggregate demand exceeds aggregate supply.
Refer to the information provided in Figure 8.1 below to answer the questions that follow. Figure...
Refer to the information provided in Figure 8.1 below to answer the questions that follow. Figure 8.1 1) Refer to Figure 8.1. The equation for this household's saving function is a) S = -1,000 + 0.8Y. b) S = -300 + 0.25Y. c) S = -200 + 0.8Y. d) S = -500 + 0.5Y. Refer to the information provided in Figure 8.1 below to answer the questions that follow. Figure 8.1 2) Refer to Figure 8.1. This household consumes $2,000...
Answer parts e-f Problem 2: (20 points) Consider an economy which is closed and has no government. Suppose the consumpt...
Answer parts e-f
Problem 2: (20 points) Consider an economy which is closed and has no government. Suppose the consumption function is given by C 50 0.4Y and the investment is given as I 25 a. What is the equilibrium level of income in this case? (5 points) b. What is the level of saving in equilibrium? (2 points) c. If, for some reason, output is at the level of 300, what is the level of involuntary inventory accumulation? Is...
MacroEconomics - Can someone ask these questions please. Thank you! For questions 6 to 9, use...
MacroEconomics - Can someone ask these questions please. Thank
you!
For questions 6 to 9, use the following information: where Yn denotes disposable income where i denotes interest rato where y denotes total income or production Consumption: C = 100 + 0.5Y)) Investment: 1 = 50 - 5001 Tax minus transfer: T = 200 Government spending: G = 500 Real money demand: M = Y - 40001 Real money supply: M = 1000 where P - 1 where P =...
Answer parts a-d. Problem 2: (20 points) Consider an economy which is closed and has no...
Answer parts a-d.
Problem 2: (20 points) Consider an economy which is closed and has no government. Suppose the consumption function is given by C = 50+ 0.4Y and the investment is given as I = 25. a. What is the equilibrium level of income in this case? (5 points) b. What is the level of saving in equilibrium? (2 points) c. If, for some reason, output is at the level of 300, what is the level of involuntary inventory...
6. Answer the following questions based on the figure below: 45° .C 250 500 Income 750...
6. Answer the following questions based on the figure below: 45° .C 250 500 Income 750 a. The equilibrium level of income in the figure above is (1) 250, (2) 500, or (3) 750? b. Dissavings in the figure above is represented by the distance (1) CD, or (2) AB? c.Savings in the figure above is represented by the distance (1) CD or (2) AB? Consumption ш
Could you please help me with 1a-c. Pictures below. It would be greatly appreciated. Thankyou so...
Could you please help me with 1a-c. Pictures below. It would
be greatly appreciated. Thankyou so much.
1.a)
b)
c)
Use the information below for a four sector economy, answer the following questions: - 300 +0.75 Yd = = DELUXE 150 400 = Disposable Income GDP Consumption Taxes Investment Exports Imports Full Employment GDP Equilibrium Income 150 2,691 = YT Part 1: What is the value of autonomous expenditures Number Part 2: What is the slope of the aggregate expenditure...
please help me with this assignment. you have to answer the following questions on the basis...
please help me with this assignment. you have to answer the
following questions on the basis of the following hypothetical
national income data and show your work. i will leave a great
review.
ncs x + ixt4VeSy4dmXic1ERfojCgIXEAbZrBmB5DRA/edit?ts=5e6aa6bc All changes saved in Drive - 12 - BIUA 15 IEE E 1 56 Answer the following questions on the basis of the following hypothetical national income data. SHOW YOUR WORK $ 15 400 135 320 Interest paid by consumers-- Government purchases of...
Refer to the information provided in Table 8.1 below to answer the questions that follow. Table 8.1 1) Refer to Tab...
Refer to the information provided in Table 8.1 below to answer the questions that follow. Table 8.1 1) Refer to Table 8.1. Society's MPC is a) 0.80. b) 0.05. c) 0.90. d) 0.95. 2) Refer to Table 8.1. Society's MPS is a) 0.05. b) 0.10. c) 0.95. d) 0.20. 3) Refer to Table 8.1. At an aggregate income level of $100, aggregate saving would be a) -$70. b) $70. c) $50. d) -$30. Refer to the information provided in Figure...
A5-10. Suppose the following aggregate expenditure model describes an economy: C = 100 + (5/6)Yd T...
A5-10. Suppose the following aggregate expenditure model describes an economy: C = 100 + (5/6)Yd T = (1/5)Y 1 = 200 G = 400 X = 300 IM = (1/3)Y where C is consumption, Yd is disposable income, T is taxes, Y is national income, I is investment, G is government spending, X is exports, and IM is imports. (a) Derive a numerical expression for aggregate expenditure (AE) as a function of Y. Calculate the equilibrium level of national income....
QUESTION 18 In Figure 9-1, income level E is the level at which Consumption, savings, Intended Investment > * - JA E Net National Income intended investment is less than savings and aggregate demand exceeds aggregate supply, intended investment is less than savings and aggregate demand is less than aggregate supply. intended investment is greater than savings and aggregate demand is less than aggregate supply intended investment is greater than savings and aggregate demand exceeds aggregate supply.
Answer parts e-f
Problem 2: (20 points) Consider an economy which is closed and has no government. Suppose the consumption function is given by C 50 0.4Y and the investment is given as I 25 a. What is the equilibrium level of income in this case? (5 points) b. What is the level of saving in equilibrium? (2 points) c. If, for some reason, output is at the level of 300, what is the level of involuntary inventory accumulation? Is...
MacroEconomics - Can someone ask these questions please. Thank
you!
For questions 6 to 9, use the following information: where Yn denotes disposable income where i denotes interest rato where y denotes total income or production Consumption: C = 100 + 0.5Y)) Investment: 1 = 50 - 5001 Tax minus transfer: T = 200 Government spending: G = 500 Real money demand: M = Y - 40001 Real money supply: M = 1000 where P - 1 where P =...
Answer parts a-d.
Problem 2: (20 points) Consider an economy which is closed and has no government. Suppose the consumption function is given by C = 50+ 0.4Y and the investment is given as I = 25. a. What is the equilibrium level of income in this case? (5 points) b. What is the level of saving in equilibrium? (2 points) c. If, for some reason, output is at the level of 300, what is the level of involuntary inventory...
6. Answer the following questions based on the figure below: 45° .C 250 500 Income 750 a. The equilibrium level of income in the figure above is (1) 250, (2) 500, or (3) 750? b. Dissavings in the figure above is represented by the distance (1) CD, or (2) AB? c.Savings in the figure above is represented by the distance (1) CD or (2) AB? Consumption ш
Could you please help me with 1a-c. Pictures below. It would
be greatly appreciated. Thankyou so much.
1.a)
b)
c)
Use the information below for a four sector economy, answer the following questions: - 300 +0.75 Yd = = DELUXE 150 400 = Disposable Income GDP Consumption Taxes Investment Exports Imports Full Employment GDP Equilibrium Income 150 2,691 = YT Part 1: What is the value of autonomous expenditures Number Part 2: What is the slope of the aggregate expenditure...
please help me with this assignment. you have to answer the
following questions on the basis of the following hypothetical
national income data and show your work. i will leave a great
review.
ncs x + ixt4VeSy4dmXic1ERfojCgIXEAbZrBmB5DRA/edit?ts=5e6aa6bc All changes saved in Drive - 12 - BIUA 15 IEE E 1 56 Answer the following questions on the basis of the following hypothetical national income data. SHOW YOUR WORK $ 15 400 135 320 Interest paid by consumers-- Government purchases of...
A5-10. Suppose the following aggregate expenditure model describes an economy: C = 100 + (5/6)Yd T = (1/5)Y 1 = 200 G = 400 X = 300 IM = (1/3)Y where C is consumption, Yd is disposable income, T is taxes, Y is national income, I is investment, G is government spending, X is exports, and IM is imports. (a) Derive a numerical expression for aggregate expenditure (AE) as a function of Y. Calculate the equilibrium level of national income....
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