Income Or Output Y |
Consumption Expenditure C |
Investment Expenditure I |
Government Expenditure G |
Net export Expenditure NX |
$4,000 |
3,925 |
100 |
100 |
25 |
4,100 |
4,000 |
100 |
100 |
25 |
4,200 |
4,075 |
100 |
100 |
25 |
4,300 |
4,150 |
100 |
100 |
25 |
4,400 |
4,225 |
100 |
100 |
25 |
4,500 |
4,300 |
100 |
100 |
25 |
4,600 |
4,375 |
100 |
100 |
25 |
4,700 |
4,450 |
100 |
100 |
25 |
4,800 |
4,525 |
100 |
100 |
25 |
4,900 |
4,600 |
100 |
100 |
25 |
5,000 |
4,675 |
100 |
100 |
25 |
a) Determine equilibrium level of income?
Equilibrium level of income is where
Y = C+ I+ G+NX
And according to the given table
Income Or Output Y |
Consumption Expenditure C |
Investment Expenditure I |
Government Expenditure G |
Net export Expenditure NX |
C +I + G + NX |
$4,000 |
3,925 |
100 |
100 |
25 |
3925 + 100 + 100 + 25 = 4150 |
4,100 |
4,000 |
100 |
100 |
25 |
4000 + 100 + 100+ 25 = 4225 |
4,200 |
4,075 |
100 |
100 |
25 |
4300 |
4,300 |
4,150 |
100 |
100 |
25 |
4375 |
4,400 |
4,225 |
100 |
100 |
25 |
4450 |
4,500 |
4,300 |
100 |
100 |
25 |
4525 |
4,600 |
4,375 |
100 |
100 |
25 |
4600 |
4,700 |
4,450 |
100 |
100 |
25 |
4675 |
4,800 |
4,525 |
100 |
100 |
25 |
4750 |
4,900 |
4,600 |
100 |
100 |
25 |
4825 |
5,000 |
4,675 |
100 |
100 |
25 |
4900 |
At income level 4600,
Y =C + I + G + NX
So equilibrium level off income is $4600
Income Or Output Y Consumption Expenditure C Investment Expenditure I Government Expenditure G...
Income Or Output Y Consumption Expenditure C Investment Expenditure I Government Expenditure G Net export Expenditure NX $4,000 3,925 100 100 25 4,100 4,000 100 100 25 4,200 4,075 100 100 25 4,300 4,150 100 100 25 4,400 4,225 100 100 25 4,500 4,300 100 100 25 4,600 4,375 100 100 25 4,700 4,450 100 100 25 4,800 4,525 100 100 25 4,900 4,600 100 100 25 5,000 4,675 100 100 25 b) Calculate expenditure multiplier
Income Or Output Y Consumption Expenditure C Investment Expenditure I Government Expenditure G Net export Expenditure NX $4,000 3,925 100 100 25 4,100 4,000 100 100 25 4,200 4,075 100 100 25 4,300 4,150 100 100 25 4,400 4,225 100 100 25 4,500 4,300 100 100 25 4,600 4,375 100 100 25 4,700 4,450 100 100 25 4,800 4,525 100 100 25 4,900 4,600 100 100 25 5,000 4,675 100 100 25 c) If government expenditure...
Income Or Output Y Consumption Expenditure C Investment Expenditure I Government Expenditure G Net export Expenditure NX $4,000 3,925 100 100 25 4,100 4,000 100 100 25 4,200 4,075 100 100 25 4,300 4,150 100 100 25 4,400 4,225 100 100 25 4,500 4,300 100 100 25 4,600 4,375 100 100 25 4,700 4,450 100 100 25 4,800 4,525 100 100 25 4,900 4,600 100 100 25 5,000 4,675 100 100 25 2. Calculate MPC, MPS...
Income Or Output Y Consumption Expenditure C Investment Expenditure I Government Expenditure G Net export Expenditure NX $4,000 3,925 100 100 25 4,100 4,000 100 100 25 4,200 4,075 100 100 25 4,300 4,150 100 100 25 4,400 4,225 100 100 25 4,500 4,300 100 100 25 4,600 4,375 100 100 25 4,700 4,450 100 100 25 4,800 4,525 100 100 25 4,900 4,600 100 100 25 5,000 4,675 100 100 25 e) Suppose a tax...
Income Or Output Y Consumption Expenditure C Investment Expenditure I Government Expenditure G Net export Expenditure NX $4,000 3,925 100 100 25 4,100 4,000 100 100 25 4,200 4,075 100 100 25 4,300 4,150 100 100 25 4,400 4,225 100 100 25 4,500 4,300 100 100 25 4,600 4,375 100 100 25 4,700 4,450 100 100 25 4,800 4,525 100 100 25 4,900 4,600 100 100 25 5,000 4,675 100 100 25 3. Calculate GDP loss...
Income Or Output Y Consumption Expenditure C Investment Expenditure I Government Expenditure G Net export Expenditure NX $4,000 3,925 100 100 25 4,100 4,000 100 100 25 4,200 4,075 100 100 25 4,300 4,150 100 100 25 4,400 4,225 100 100 25 4,500 4,300 100 100 25 4,600 4,375 100 100 25 4,700 4,450 100 100 25 4,800 4,525 100 100 25 4,900 4,600 100 100 25 5,000 4,675 100 100 25 3. Calculate GDP loss...
Income Or Output Y Consumption Expenditure C Investment Expenditure I Government Expenditure G Net export Expenditure NX $4,000 3,925 100 100 25 4,100 4,000 100 100 25 4,200 4,075 100 100 25 4,300 4,150 100 100 25 4,400 4,225 100 100 25 4,500 4,300 100 100 25 4,600 4,375 100 100 25 4,700 4,450 100 100 25 4,800 4,525 100 100 25 4,900 4,600 100 100 25 5,000 4,675 100 100 25 3. Calculate GDP loss...
Income Or Output Y Consumption Expenditure C Investment Expenditure I Government Expenditure G Net export Expenditure NX $4,000 3,925 100 100 25 4,100 4,000 100 100 25 4,200 4,075 100 100 25 4,300 4,150 100 100 25 4,400 4,225 100 100 25 4,500 4,300 100 100 25 4,600 4,375 100 100 25 4,700 4,450 100 100 25 4,800 4,525 100 100 25 4,900 4,600 100 100 25 5,000 4,675 100 100 25 a) Determine equilibrium level...
Income (Yd) Consumption Expenditure Saving Investment Expenditure Government Expenditure Net Export Expenditure Aggregate Expenditure $8000 $11,000 $2,500 $5,000 $12,500 12,000 14,000 2,500 5,000 12,500 20,000 20,000 2,500 5,000 12,500 30,000 27,500 2,500 5,000 12,500 50,000 42,500 2,500 5,000 12,500 100,000 80,000 2,500 5,000 12,500 Calculate savings, MPC, MPS, break even income, and the equilibrium level of income (Y = AE = C + I + G +NX) in the above given information. Draw a graph showing disposable income (Yd)...
Table 20-2 GDP Domestic Expenditure Exports Imports Total Expenditures C + I + G + (X - IM) $650 650 650 $2,500 3,000 3,500 4,000 4,500 5,000 5,500 C+I+G $3,100 3,400 3,700 4,000 4,300 4,600 4,900 $250 300 350 400 450 500 In Table 20-2, what are net exports when GDP-3,500? O a. 400 PO b. 100 Doc.300 08.200