Homework Answers
These are two separate questions. As per HOMEWORKLIB POLICY and guideline the first-question is answered below:
Q1.
The equilibrium stage (Yd) could be found by aggregating all expenses.
Yd = Consumption expense + Investment spending + Government spending
Yd = (250 + 0.75Yd) + 100 + 50
Now, by solving as below:
Yd = 250 + 0.75Yd + 150
Yd – 0.75Yd = 250 + 150
0.25Yd = 400
Yd = 400 / 0.25
= 1,600
Answer: 1,600
Note: since this is a closed economy, export and import should not be considered here.
Add Answer to:
Suppose a closed economy has an intended investment of 100 and an aggregate consumption function given...
Suppose a closed economy has an aggregate consumption function given by C = 100 +0.75Yd and...
Suppose a closed economy has an aggregate consumption function given by C = 100 +0.75Yd and generates $2500 output and income in equilibrium. Suppose also that the government spends 500 and imposes a lump-sum tax of 50. What is the level of intended investment? (round your answer to the nearest whole value) Your Answer: Suppose a closed economy has an aggregate savings equal to 100 and intended investment equal to 500. 10 By how much must the government be in...
Question 13 (5 points) Suppose a closed economy has an aggregate consumption function given by C-200...
Question 13 (5 points) Suppose a closed economy has an aggregate consumption function given by C-200 +0.8Y, and generates $2.400 output and income in equilibrium. Suppose also that the government spends $350 and imposes a lump-sum tax of $300. How much will the private sector be saving total in equilibrium (S.)? Is the government running a deficit or surplus? By how much? (Circle 'surplus' or 'deficit' and enter the size (in dollars)) Is the private sector in deficit or surplus?...
1.Consider a closed economy with no taxes, whose consumption function, investment level & government spending level...
1.Consider a closed economy with no taxes, whose consumption function, investment level & government spending level are given by the following equations: C= 5,000 + .80Y I= 9,000 G= 2000 whereGrepresents government spending. The equilibrium condition is, as always, that the value of the economy’s output (Y) must be matched by aggregate demand, but now aggregate demand contains a third element, G. a. What is the equilibrium level of aggregate output for this economy? b. What is the saving function for this...
6a. Assume a closed economy with no government, in which the aggregate consumption function is C...
6a. Assume a closed economy with no government, in which the aggregate consumption function is C = 100 + .75Y and investment (I) is $100 billion. In the income-expenditure analysis, the equilibrium level of national income is: a. $300 billion. b. $500 billion. c. $200 billion. d. $800 billion. e. $650 billion. 6b. The difference between a household’s disposable income and its consumption: a. equals any saving by the household. b. equals the taxes the household pays. c. equals the...
19. Consider a closed economy where the consumption function is C = 100+ 0.8(Y – T),...
19. Consider a closed economy where the consumption function is C = 100+ 0.8(Y – T), where T represents lump sum taxes. Investment is fixed at 100, and government spending is also 100. a. Assuming that the budget is balanced, calculate the equilibrium income for this economy. b. Suppose the government is committed to a balanced budget, but it sees that the economy is overheating (growing too fast). It decides to lower both government spending and taxes by 50 each....
Consider a small economy that is closed to trade, so its net exports are equal to zero. Suppose that the economy has the following consumption function
5. Algebra of the income-expenditure model Consider a small economy that is closed to trade, so its net exports are equal to zero. Suppose that the economy has the following consumption function, where C is consumption, Y is real GDP, I is investment, G is government purchases, and T is for net taxes: C= 20 + 0.75 x (Y - T) Suppose G = $35 billion, 1 = $60 billion, and T = $20 billion. Given the consumption function and the fact that, in...
1. In a closed economy to have sustainable output, Aggregate Expenditures are equal to
1. In a closed economy to have sustainable output, Aggregate Expenditures are equal toa. Consumptionb. Consumption + Investmentc. Consumption + Investment + Govemmentd. Consumption + Investment + Net Exports2. The calculation 1 /(1-MPC) equalsa. Marginal Propensity to Saveb. Multiplierc. Aggregate Expenditured. Average Consumption3. In a closed economy, when Aggregate Expenditures equal GDP.a. Consumption equals investmentb. Consumption equals aggregate expenditurec. Saving = Planned Investmentd. Disposable income equals consumption minus saving4. Net exports are calculated asa. Importsb. Imports - Exportsc. Exports -...
Question 8 0.9 pts For this problem think about the goods market. Suppose the consumption equation is represented by th...
Question 8 0.9 pts For this problem think about the goods market. Suppose the consumption equation is represented by the following: C 200 0.75YD (where YD is disposable income), that investment is fixed ), and that government expenditures and taxes are determined exogenously. Suppose the economy is currently in equilibrium, but the government decides that it wants to achieve two goals: lead the economy to more output, and keep the government deficit at the current level. To achieve this, the...
Suppose that consumption is $2,200, investment is $350, and government spending is $500. The economy is...
Suppose that consumption is $2,200, investment is $350, and government spending is $500. The economy is closed so there are no net exports. Taxes are $425. Based on this information: National saving is $ Private saving is $ Government (public) saving is $ Enter whole numbers.
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....
Suppose a closed economy has an aggregate consumption function given by C = 100 +0.75Yd and generates $2500 output and income in equilibrium. Suppose also that the government spends 500 and imposes a lump-sum tax of 50. What is the level of intended investment? (round your answer to the nearest whole value) Your Answer: Suppose a closed economy has an aggregate savings equal to 100 and intended investment equal to 500. 10 By how much must the government be in...
Question 13 (5 points) Suppose a closed economy has an aggregate consumption function given by C-200 +0.8Y, and generates $2.400 output and income in equilibrium. Suppose also that the government spends $350 and imposes a lump-sum tax of $300. How much will the private sector be saving total in equilibrium (S.)? Is the government running a deficit or surplus? By how much? (Circle 'surplus' or 'deficit' and enter the size (in dollars)) Is the private sector in deficit or surplus?...
19. Consider a closed economy where the consumption function is C = 100+ 0.8(Y – T), where T represents lump sum taxes. Investment is fixed at 100, and government spending is also 100. a. Assuming that the budget is balanced, calculate the equilibrium income for this economy. b. Suppose the government is committed to a balanced budget, but it sees that the economy is overheating (growing too fast). It decides to lower both government spending and taxes by 50 each....
1. In a closed economy to have sustainable output, Aggregate Expenditures are equal toa. Consumptionb. Consumption + Investmentc. Consumption + Investment + Govemmentd. Consumption + Investment + Net Exports2. The calculation 1 /(1-MPC) equalsa. Marginal Propensity to Saveb. Multiplierc. Aggregate Expenditured. Average Consumption3. In a closed economy, when Aggregate Expenditures equal GDP.a. Consumption equals investmentb. Consumption equals aggregate expenditurec. Saving = Planned Investmentd. Disposable income equals consumption minus saving4. Net exports are calculated asa. Importsb. Imports - Exportsc. Exports -...
Question 8 0.9 pts For this problem think about the goods market. Suppose the consumption equation is represented by the following: C 200 0.75YD (where YD is disposable income), that investment is fixed ), and that government expenditures and taxes are determined exogenously. Suppose the economy is currently in equilibrium, but the government decides that it wants to achieve two goals: lead the economy to more output, and keep the government deficit at the current level. To achieve this, the...
Suppose that consumption is $2,200, investment is $350, and government spending is $500. The economy is closed so there are no net exports. Taxes are $425. Based on this information: National saving is $ Private saving is $ Government (public) saving is $ Enter whole numbers.
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....
Most questions answered within 3 hours.
-
A crate slides up a frictionless slope. At the end of 3 seconds
its velocity is...
asked 10 minutes ago -
Use the following information to answer the next seven
questions.
Suppose there are three potential states...
asked 6 minutes ago -
If we only have interstitial and substitutional diffusion, then
what do we consider the process of...
asked 22 minutes ago -
You look at yourself in a shiny 9.6-cm-diameter Christmas tree
ball.
If your face is 21.0...
asked 24 minutes ago -
If we were to measure the relaxation time of a muscle after
undergoing tetanus compared to...
asked 23 minutes ago -
4CO(g) + 8H2(g) -----> 3CH4(g) +
CO2(g) + 2H2O(l)
Use the following data as needed to...
asked 27 minutes ago -
without using map
1. Write a C++ program to find out the top 10 words in...
asked 40 minutes ago -
1)Calculate the percent ionization of a
0.330 M solution of hypochlorous
acid.
% Ionization = %...
asked 43 minutes ago -
1a) How many grams of K2SO4 are in 250mL
of 0.11 M K2SO4 solution?
_____ g...
asked 33 minutes ago -
The vapor pressure of a solution containing 38.7 g glycerin
(C3H8O3) in 146.2 g ethanol (C2H5OH)...
asked 39 minutes ago -
A physics major is cooking breakfast when he notices that the
frictional force between the steel...
asked 44 minutes ago -
A cyclohexane (c-hex) solution is prepared by fully dissolving
9.11g of a newly synthesized organic compound...
asked 50 minutes ago