Answer
equilibrium is at
Y=Expenditure
Y=real GD
Y=C+I+G+X
Y=100+0.9*(Y-500)+200+500+50
0.1Y=850-450
0.1Y=400
Y=$4000
the equilibrium is at $4000
Suppose that the economy is depicted by the following relationship: Expenditures =C+I+G+X where: C = $100...
CUCep UJUH 0. Suppose that the economy is depicted by the following relationship: Expenditures =C+I+G+X where: C = $100+ 0.80 (Y-T) G=$ 600 T= $ 600 I= $300 X = $ 150 The economy is in equilibrium at a level of real GDP or income of $ 3,350 (Round your answer to the nearest dollar:) Now suppose that the government decides to increase government spending by $125 What is the new equilibrium level of GDP or income? $ (Round your...
Answer the following questions, which relate to the aggregate
expenditures model:
Instructions: Enter your answer as a whole
number.
a. Given the following: Ca = $120,
Ig = $60, Xn = − $10, and
G= $30, what is the economy’s equilibrium
GDP?
b. If real GDP in an economy is currently $230, will the
economy’s real GDP rise, fall, or stay the same?
(Click to select) Real GDP will
rise. Real GDP will fall. Real
GDP stay the same.
c. Suppose that full-employment...
You are given the following income-expenditures model for the economy of Vulcan. C = 200 + .8Yd T = 50 G = 100 I = 140 a) What is the equilibrium level of income in Vulcan? b) At the equilibrium level of income, what is the amount of savings? c) If government spending increases to 150, what is the new level of equilibrium income?
Answer the following questions, which relate to the aggregate expenditures model: a. Given the following: Ca = $120, Ig = $60, Xn = − $10, and G = $40, What is the economy’s equilibrium GDP? Instructions: Enter your answer as a whole number. Equilibrium GDP = $ . b. If real GDP in an economy is currently $240, will the economy’s real GDP rise, fall, or stay the same? (Click to select) Real GDP will fall Real GDP will rise Real GDP will...
Question#1AThe following are details of the expenditure of a very small economy. All the autonomous expenditures are given in $ thousand. C = 200 + 0.8Yd I = 10 G = 50 T = 0.05Y X = 40 M = 0.1Y Derive the aggregate expenditure function, and calculate the equilibrium real GDP Determine the expenditure multiplier using aggregate expenditure function slop value
Answer the following questions, which relate to the aggregate expenditures model: Instructions: Enter your answer as a whole number. a. Given the following: Ca = $130, 1g = $60, Xn=- $10, and G= $40, what is the economy's equilibrium GDP? Equilibrium GDP = D . b. If real GDP in an economy is currently $250, will the economy's real GDP rise, fall, or stay the same? (Click to select) c. Suppose that full-employment and full-capacity) output in an economy is...
Suppose that the following equations characterize the economy; C=$160+0.80Y_D I=$300 G=$200 T=$200 Please answer the following questions; Write down the equilibrium condition (please use Z for the total demand for goods and Y for production). Write down an equation for Z. Calculate GDP (Y=?) Calculate the multiplier Calculate consumption? What is saving? Suppose that private firms are less confident about the future path of the economy. Firms cut investment by $100. Now the economy is experiencing an economic crisis. Calculate...
5. (10 Marks) The money market for the economy of Charlton is depicted in the graph given below (all dollar figures are in billions): Interest rate 50 100 150 200 250 300 Quantity of money The investment demand curve is shown in the following figure. 250 50 100 150 200 Quantity of investment Suppose that the central bank of Charlton wishes to use contractionary monetary policy and decreases the money supply by $50 billion. a. Draw the new money supply...
Suppose equilibrium for an economy occurs when C + I + G + X = $14 trillion. If the real Gross Domestic Product (GDP) is $13 trillion, then unplanned inventories are A. decreasing, and real Gross Domestic Product (GDP) will expand. B. decreasing, and real Gross Domestic Product (GDP) will contract. C. increasing, and real Gross Domestic Product (GDP) will expand. D. increasing, and real Gross Domestic Product (GDP) will contract.
1. Consider an economy where aggregate expenditures can be characterized by the following information: household consumption C = 100+ 0.8Yd, investment expenditure 1 = 100, government expenditure G = 300, exports X = 300 and imports IM = 0.14Y. Suppose that the income tax rate is 20%, and that the government has no initial debt, so that D = 0. (a) Solve for the AE function and the equilibrium level of national output Y. (b) Solve for the government's budget...