Homework Answers
| GDP(Y) | C | Ig | G | Xn | AE = C+Ig+G+Xn |
| 300 | 250 | 40 | 20 | 20 | 330 |
| 350 | 290 | 40 | 20 | 20 | 370 |
| 400 | 330 | 40 | 20 | 20 | 410 |
| 450 | 370 | 40 | 20 | 20 | 450 |
| 500 | 410 | 40 | 20 | 20 | 490 |
| 550 | 450 | 40 | 20 | 20 | 530 |
| 600 | 490 | 40 | 20 | 20 | 570 |
| 650 | 530 | 40 | 20 | 20 | 610 |
a) MPC = ∆C/∆Y = 40 / 50 = 0.8
MPS = 1 - MPC = 1 - 0.8 = 0.2
b) If full employment GDP is 600, there is a recessionary gap. Because equilibrium GDP or actual GDP is 450. Since actual GDP is less than full employment GDP, there is a recessionary gap.
Refer to the accompanying table to answer the questions that follow. (1) (2) (3) Real Domestic...
Refer to the accompanying table to answer the questions that follow. (1) (2) (3) Real Domestic Output, Billions Aggregate Expenditures (Ca + lg + Xn + G), Billions $520 $500 Possible Levels of Employment, Millions 90 100 110 120 130 550 560 600 650 700 600 640 680 a. If full employment in this economy is 130 million, will there be an inflationary expenditure gap or a recessionary expenditure gap? Inflationary expenditure gap What will be the consequence of this...
VV DF G H I J GDP C 5000 5500 6000 6500 7000 Ig G 4400...
VV DF G H I J GDP C 5000 5500 6000 6500 7000 Ig G 4400 400 4800 400 5200 400 5600 400 6000 400 200 200 200 200 200 Xn 100 100 100 100 100 c. If full employment output is 5000, 1) Is there an inflationary gap or recessionary gap? 2) How much would government spending need to change to bring about the necessary change to return the economy to full employment equilibrium? 3) Or, how much would...
Refer to the accompanying table in answering the questions that follow: Aggregate Expenditures (Catlg+Xn+G), Billions 420...
Refer to the accompanying table in answering the questions that follow: Aggregate Expenditures (Catlg+Xn+G), Billions 420 Real Domestic Output, Possible Levels of Employment, Millions 70 90 110 130 150 Billions 400 450 460 500 540 580 600 a. If full employment in this economy is 150 million, will there be an inflationary expenditure gap or a recessionary expenditure gap? (Click to select) What will be the consequence of this gap? (Click to select) By how much would aggregate expenditures in...
GDP с s lg х M AE 360 352 8 28 50 100 70 380 368...
GDP с s lg х M AE 360 352 8 28 50 100 70 380 368 12 28 50 100 70 400 384 16 28 50 100 70 420 400 20 28 50 100 70 440 416 24 28 50 100 70 460 432 28 28 50 100 70 480 448 32 28 50 100 70 When GDP = 360, AE=? Ą When GDP = 380, AE=? Ą When GDP=400, AE=? Ą When GDP=420, AE=? Ą When GDP=440, AE=? A...
I just need help with questions 5 and 6 370 300 630 530 Next SIX questions...
I just need help with questions 5 and 6
370 300 630 530 Next SIX questions are related to the following data: The following is a random sample of n = 90 undergraduate students' annual textbook expense. 610 600 300 420 520 470 430 520 400 370 730 480 450 500 650 540 330 690 550 450 450 750 750 660 700 770 760 390 680 590 700 580 390 330 320 350 490 310 320 780 370 760 630...
Use the following macroeconomic model structure to answer the questions followed. 8 pts C = 300...
Use the following macroeconomic model structure to answer the questions followed. 8 pts C = 300 + 0.8Yd; C = consumption function; Yd (Y-T) = disposable income I = 200; I = Investment G = 400; G = Government expenditure T = 200; T = Tax revenue Also assume that Yf = Full employment GDP (Potential GDP) = 5,000 8.1. The equilibrium GDP level (income) is _________. Hint: Ye = C+I+G a. 2,850 b. 3,700 c. 3,145 d. 3,800 8.2....
1. Equilibrium GDP can operate at, below, or above full employment GDP. True/False 2. Imports have...
1. Equilibrium GDP can operate at, below, or above full employment GDP. True/False 2. Imports have the same effect on the current size of GDP as A) exports B) investment C) consumption D) savings 3. With an MPC of 0.75, a $10 billion decrease in taxes will decrease equilibrium GDP by $30 billion. True/False 4. If equilibrium GDP exceeds full employment GDP, a recessionary gap exists. True/False 5. The economy below would be characterized as a domestic output AE, closed...
Next SIX questions are related to the following data: The following is a random sample of...
Next SIX questions are related to the following data: The following is a random sample of n = 90 undergraduate students' annual textbook expense. 610 600 300 420 520 470 430 520 400 370 730 480 450 500 650 370 540 330 690 550 450 450 750 750 660 700 300 770 760 390 680 450 590 630 530 700 580 390 330 320 350 490 310 320 780 590 370 470 760 550 630 450 640 620 520 440...
All numbers except variable 'b' is in billions of dollars. AE = C + I + G + (X - IM) a (autonomous consumption) = 10 b (MPC) = 0.8 I = 30 G = 20 (X - IM) = 10 A) What is equilibrium Y? B) What...
All numbers except variable 'b' is in billions of dollars. AE = C + I + G + (X - IM) a (autonomous consumption) = 10 b (MPC) = 0.8 I = 30 G = 20 (X - IM) = 10 A) What is equilibrium Y? B) What are savings at equilibrium? C) What are injections at equilibrium? D) If YF (income at full employment) is 300, what kind of gap exists, and how large? (inflationary or recessionary) E) What...
1) The Economy cannot be considered fully employed unless the measured unemployment rate is below 1%....
1) The Economy cannot be considered fully employed unless the measured unemployment rate is below 1%. Agree or disagree and explain your answer in a paragraph. What is the current actual u - rate for the US economy as of Sep 2019 Data for 2019 ? Is this unemploymen t rate bel ow or above or equal to u - rate at full employment (usually called natural rate of unemployment or NAIRU)? 2) A) Why would you expect the inflation...
Refer to the accompanying table to answer the questions that follow. (1) (2) (3) Real Domestic Output, Billions Aggregate Expenditures (Ca + lg + Xn + G), Billions $520 $500 Possible Levels of Employment, Millions 90 100 110 120 130 550 560 600 650 700 600 640 680 a. If full employment in this economy is 130 million, will there be an inflationary expenditure gap or a recessionary expenditure gap? Inflationary expenditure gap What will be the consequence of this...
VV DF G H I J GDP C 5000 5500 6000 6500 7000 Ig G 4400 400 4800 400 5200 400 5600 400 6000 400 200 200 200 200 200 Xn 100 100 100 100 100 c. If full employment output is 5000, 1) Is there an inflationary gap or recessionary gap? 2) How much would government spending need to change to bring about the necessary change to return the economy to full employment equilibrium? 3) Or, how much would...
Refer to the accompanying table in answering the questions that follow: Aggregate Expenditures (Catlg+Xn+G), Billions 420 Real Domestic Output, Possible Levels of Employment, Millions 70 90 110 130 150 Billions 400 450 460 500 540 580 600 a. If full employment in this economy is 150 million, will there be an inflationary expenditure gap or a recessionary expenditure gap? (Click to select) What will be the consequence of this gap? (Click to select) By how much would aggregate expenditures in...
GDP с s lg х M AE 360 352 8 28 50 100 70 380 368 12 28 50 100 70 400 384 16 28 50 100 70 420 400 20 28 50 100 70 440 416 24 28 50 100 70 460 432 28 28 50 100 70 480 448 32 28 50 100 70 When GDP = 360, AE=? Ą When GDP = 380, AE=? Ą When GDP=400, AE=? Ą When GDP=420, AE=? Ą When GDP=440, AE=? A...
I just need help with questions 5 and 6
370 300 630 530 Next SIX questions are related to the following data: The following is a random sample of n = 90 undergraduate students' annual textbook expense. 610 600 300 420 520 470 430 520 400 370 730 480 450 500 650 540 330 690 550 450 450 750 750 660 700 770 760 390 680 590 700 580 390 330 320 350 490 310 320 780 370 760 630...
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