Homework Answers
1.
For equilibrium:
Current expected income = Consumption + Investment
Here,
Current expected income = 360 million
Aggregate spending= Consumption + Investment= 250 million + 180 million= 430 million
So equilibrium condition not satisfied.
Now as Aggregate spending > Current expected income, it means that the inventory with producer starts to decrease that is unplanned inventory decreases and to cope up with higher spending, producer need to produce more which cause rise in income.
Unplanned inventories= Current expected income - Aggregate spending= 360 million - 430 million= -70 million
Add Answer to:
plz thanks
1. Suppose that consumers plan, based on their current expected income of 360 million,...
1. Complete the table below where the cells are blank. (10 pts) Output Sensor Saving Inxstant...
1. Complete the table below where the cells are blank. (10 pts) Output Sensor Saving Inxstant Export Import ort GDP=DI Net Agg Age Unnind Output Invent Emploxmnt 250 260 310 15 330310 2. What number is unplanned inventories at output of $270 million? Explain what the unplanned inventories number means at that output level? (2 pts) 3. At $330 million of output what must happen in this open economy to reach equilibrium? (2 pts) 4. Equilibrium is achieved at what...
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 -...
plz thanks 9. Suppose that consumption and planned investment are given respectively by C = 1000+0.65Y...
plz
thanks
9. Suppose that consumption and planned investment are given respectively by C = 1000+0.65Y & Iplanned = 500+0.15Y (a) Find the equilibrium level of output in this economy. 5 points. (b) Sketch and fully label the Keynesian cross diagram for this economy. 5 points. (c) Suppose that consumers decrease their mpe by 0.35 due to uncertain times. What is the change in the equilibrium income? 5 points.
22. Why is the multiplier for a change in taxes smaller than for a change in spendi...
22. Why is the multiplier for a change in taxes smaller than for a change in spending? a. A change in taxes has no effect on aggregate demand, only on aggregate supply. b. A change in taxes directly affects government spending as well, lowering the multiplier. c. A change in taxes affects spending directly, but at a slower rate than spending does. d. A change in taxes affects disposable income and then consumption rather than spending directly....
In Japan, taxes and real imports do not depend on real income. Autonomous real consumption is ¥400 million, lump-sum taxes (taxes that do not depend on real income) are ¥100 million, investment spendi...
In Japan, taxes and real
imports do not depend on real income. Autonomous real consumption
is ¥400 million, lump-sum taxes (taxes that do not depend on real
income) are ¥100 million, investment spending is ¥300 million,
Japanese government spending is ¥100, and real net exports are ¥0,
The Japanese Marginal Propensity to Consume is 0.60. a. Solve for
the equilibrium level of Japanese real GDP. b. Suppose that more
foreign investors begin to buy Japanese stocks on the Tokyo Stock...
Suppose that the consumers spend 80% of each additional dollar of income. In other words, marginal...
Suppose that the consumers spend 80% of each additional dollar of income. In other words, marginal propensity to consume (c1) is 0.8. Assuming a hypothetical economy which is composed of households and firms, what is the value of multiplier? QUESTION 27 Assume that the marginal propensity to consume is 0.8. How much will the output increase as a result of a $100 increase in investment spending? O 400 O 500 O 100 O 50 QUESTION 28 Assuming that there is...
very lost help me answer these 4. Suppose that a certain country has an MPC of...
very lost help me answer these 4. Suppose that a certain country has an MPC of 0.9 and a real GDP of $400 billion. If its investment spending decreases by $4 billion, what will be its new level of real GDP? 5. The data in columns 1 and 2 in the table below are for a private closed economy. GDP A.E. Private Closed Economy Exports Imports Net Exports A.E. Private Open Economy 200 240 20 30 250 280 20 30...
5. Use the Simple Classical Macroeconomic Model to answer the following questions c. Suppose the tax...
5. Use the Simple Classical Macroeconomic Model to answer the following questions c. Suppose the tax cut has not been enough to stimulate sufficient job growth. The government passes infrastructure improvement legislation to increase government spending from $3,000 to $4,000. What is the affect on GDP from the combined changes (Taxes and Spending) in government policies? . Suppose the government decides to spend $3,000 and collect $3,500 in taxes, and investment is equal to $1,500. What would GDP be if...
(1) Calculate the government spending multiplier if, an increase in government spending by $5 million increases...
(1) Calculate the government spending multiplier if, an increase in government spending by $5 million increases real GDP by $20 million. Group of answer choices 0.20 0.25 2 5 4 (2) A major benefit of automatic stabilizers is that they: Group of answer choices guarantee a balanced budget over the course of the business cycle. have a tendency to reduce the national debt. moderate the effect of fluctuations in the business cycle. require legislative review by Congress before they can...
1. A self-employed woman marries the man she has been paying to do her accounting. After...
1. A self-employed woman marries the man she has been paying to do her accounting. After they marry they decide there is no point continuing to write a check to him since they are now one-household. What effect does this have on GDP? Select one: a. None, since only their legal status changes and the same amount of productive activity is being done. b. GDP decreases because his accounting services were an intermediate good and are now a final good....
1. Complete the table below where the cells are blank. (10 pts) Output Sensor Saving Inxstant Export Import ort GDP=DI Net Agg Age Unnind Output Invent Emploxmnt 250 260 310 15 330310 2. What number is unplanned inventories at output of $270 million? Explain what the unplanned inventories number means at that output level? (2 pts) 3. At $330 million of output what must happen in this open economy to reach equilibrium? (2 pts) 4. Equilibrium is achieved at what...
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 -...
plz
thanks
9. Suppose that consumption and planned investment are given respectively by C = 1000+0.65Y & Iplanned = 500+0.15Y (a) Find the equilibrium level of output in this economy. 5 points. (b) Sketch and fully label the Keynesian cross diagram for this economy. 5 points. (c) Suppose that consumers decrease their mpe by 0.35 due to uncertain times. What is the change in the equilibrium income? 5 points.
In Japan, taxes and real
imports do not depend on real income. Autonomous real consumption
is ¥400 million, lump-sum taxes (taxes that do not depend on real
income) are ¥100 million, investment spending is ¥300 million,
Japanese government spending is ¥100, and real net exports are ¥0,
The Japanese Marginal Propensity to Consume is 0.60. a. Solve for
the equilibrium level of Japanese real GDP. b. Suppose that more
foreign investors begin to buy Japanese stocks on the Tokyo Stock...
Suppose that the consumers spend 80% of each additional dollar of income. In other words, marginal propensity to consume (c1) is 0.8. Assuming a hypothetical economy which is composed of households and firms, what is the value of multiplier? QUESTION 27 Assume that the marginal propensity to consume is 0.8. How much will the output increase as a result of a $100 increase in investment spending? O 400 O 500 O 100 O 50 QUESTION 28 Assuming that there is...
5. Use the Simple Classical Macroeconomic Model to answer the following questions c. Suppose the tax cut has not been enough to stimulate sufficient job growth. The government passes infrastructure improvement legislation to increase government spending from $3,000 to $4,000. What is the affect on GDP from the combined changes (Taxes and Spending) in government policies? . Suppose the government decides to spend $3,000 and collect $3,500 in taxes, and investment is equal to $1,500. What would GDP be if...
Most questions answered within 3 hours.
-
You have a series of simple polarisers that you can orient as
you choose in succession...
asked 2 minutes ago -
This is a c++ class utilizing class templates
and linked lists. I need to implement the...
asked 8 minutes ago -
A researcher in the field of educational psychology obtains a
random sample of 49 fourth grade...
asked 4 minutes ago -
Regression Analysis
Y = Price in $’s for Tracfone service plan
X1 = No. of minutes...
asked 6 minutes ago -
How is the Irish banking system different from the rest of
European banks and how does...
asked 9 minutes ago -
Calculate ΔGo for the reaction of ammonia with
oxygen:
4NH3 (g) + 3 O2 (g)...
asked 11 minutes ago -
How do I go from one concentration of cells to another?
In this case, I have...
asked 12 minutes ago -
Old Faithful geyser in Yellowstone Park shoots water hourly to a
height of 49.2 m. With...
asked 26 minutes ago -
What is the difference between Eddy Currents and Induced
Currents? Are they same if yes, how...
asked 28 minutes ago -
Assign an oxidation number to each atom in the reactants.
Na2S(aq)+NiCl2(aq)→2NaCl(aq)+NiS(s)
Express your answers as signed...
asked 33 minutes ago -
A screening test for a specific disease is being evaluated. In
order to evaluate the effectiveness...
asked 45 minutes ago -
Astronauts in orbit measure their own mass by measuring the
period of oscillation while sitting in...
asked 55 minutes ago