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Given the following: Output (V): 5,000 Government Spending (G): 750 Desired Savings (59): 500 If the...
Given the following: Output (Y): 10,000 Government Spending (G): 500 Desired Consumption (C): 9,500 If the...
Given the following: Output (Y): 10,000 Government Spending (G): 500 Desired Consumption (C): 9,500 If the goods market is in equilibrium for a closed economy, what is the desired level of investment?
Desired consumption, desired investment, and government spending in a closed economy are Cd = 260 -...
Desired consumption, desired investment, and government spending in a closed economy are Cd = 260 - 100r + 0.2Y Id = 100 - 300r G = 220 What value of the real interest rate clears the goods market when Y = 600? (Please show your work)
Desired consumption, desired investment, and government spending in a closed economy are Cd = 260 -...
Desired consumption, desired investment, and government spending in a closed economy are Cd = 260 - 100r + 0.2Y Id = 100 - 300r G = 220 What value of the real interest rate clears the goods market when Y = 600? (Please show your work)
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...
Spending and production in an economy are described by the following table. Currently the level of...
Spending and production in an economy are described by the following table. Currently the level of Government spending = $0. GDP $500 550 600 650 700 10 Consumption + Investment $525 560 595 630 665 700 Exports Imports $15 $10 15 15 10 15 10 750 15 10 | a. Given the following information, what is the equilibrium level of GDP for this economy? b. What is the value of the multiplier for this economy? C. If the government increases...
An economy has full-employment output of 9,000, and government purchases are 2,000. Desired consumption and desired...
An economy has full-employment output of 9,000, and government purchases are 2,000. Desired consumption and desired investment are as follows: Real Interest Rate(%) Desired Consumption 6,100 6,000 5,900 5,800 5,700 Desired Investment 1,300 1,200 ou AWN 1,100 1,000 900 c. If the goods market is in equilibrium, what are the values of the real interest rate, desired national saving, and desired investment? r=%, sd = =
Consider an economy in which taxes, planned investment, government spending on goods and services, and net...
Consider an economy in which taxes, planned investment, government spending on goods and services, and net exports are autonomous, but consumption and planned investment change as the interest rate changes. You are given the following information concerning autonomous consumption, the marginal propensity to consume, planned investment, government purchases of goods and services, and net exports: Ca = 1,500 – 10r; c = 0.6; Ta = 1,800; Ip = 2,400 – 50r; G = 2,000; NX = -200 (a)Derive Ep and...
I. You are given the following information about a hypothetical economy C 800+ 0.75Y 1 500...
I. You are given the following information about a hypothetical economy C 800+ 0.75Y 1 500 G- 900 Where C- Consumption 1 Investment G Government spending () Compute the equilibrium level of national output and consumption. (ii) What is the size of government expenditure multiplier (ii) Interpret the government expenditure multiplier in 1 (b) (ii) above (3mks) (3mk) (3mks)
An economy has no government sector and no international trade. One year, desired investment spending equals $481 billi...
An economy has no government sector and no international trade. One year, desired investment spending equals $481 billion, consumption spending in this economy equals $623 billion, and total output equals $1,401 billion. 4.1 Is this economy in equilibrium? Explain why or why not. 4.2 What is the unplanned increase in inventories in this economy? 4.3 What is total investment in this economy?
1. An economy has government purchases of 2000. Desired national saving and desired investment are given by sd = 20...
1. An economy has government purchases of 2000. Desired national saving and desired investment are given by sd = 200+ 5000r + 0.10Y-0.20G pd - 1000 - 4000r When the full-employment level of output equals 5000, then calculate the real interest rate at which the goods market is in equilibrium
Given the following: Output (Y): 10,000 Government Spending (G): 500 Desired Consumption (C): 9,500 If the goods market is in equilibrium for a closed economy, what is the desired level of investment?
Spending and production in an economy are described by the following table. Currently the level of Government spending = $0. GDP $500 550 600 650 700 10 Consumption + Investment $525 560 595 630 665 700 Exports Imports $15 $10 15 15 10 15 10 750 15 10 | a. Given the following information, what is the equilibrium level of GDP for this economy? b. What is the value of the multiplier for this economy? C. If the government increases...
An economy has full-employment output of 9,000, and government purchases are 2,000. Desired consumption and desired investment are as follows: Real Interest Rate(%) Desired Consumption 6,100 6,000 5,900 5,800 5,700 Desired Investment 1,300 1,200 ou AWN 1,100 1,000 900 c. If the goods market is in equilibrium, what are the values of the real interest rate, desired national saving, and desired investment? r=%, sd = =
I. You are given the following information about a hypothetical economy C 800+ 0.75Y 1 500 G- 900 Where C- Consumption 1 Investment G Government spending () Compute the equilibrium level of national output and consumption. (ii) What is the size of government expenditure multiplier (ii) Interpret the government expenditure multiplier in 1 (b) (ii) above (3mks) (3mk) (3mks)
1. An economy has government purchases of 2000. Desired national saving and desired investment are given by sd = 200+ 5000r + 0.10Y-0.20G pd - 1000 - 4000r When the full-employment level of output equals 5000, then calculate the real interest rate at which the goods market is in equilibrium
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