Suppose an economy is defined by the following: C = 108 + 0.6 (Yd). The 108 in this algebraic equation represents the ________.
C = 108 + 0.6 x Yd
The 108 in this algebraic equation represents the autonomous consumption.
Suppose an economy is defined by the following: C = 108 + 0.6 (Yd). The 108...
Suppose an economy is characterized by the following equations C-260+0.6 Yd Yd-Y-T I-250 G-250 T = 200 Is this econ Determine the following: omy closed or open? Explain 1) The equilibrium level of GDP (Y) 2) The total disposable income (%) of the household 3) Total consumption expenditure 4) Private savings of household, government savings and the national savings of the economy 5) Is private savings the same as aggregate investment? Explain
Imagine the economy is defined by the consumption function of C = 140 + 0.9 (Yd) where 140 is autonomous consumption, 0.9 is marginal propensity to consume, and Yd is disposable income (after taxes) and Yd=Y-T, where Y is national income (or GDP) and T=Tax Revenues=0.3Y (0.3 is the avg. income tax rate). To find the macro equilibrium use the following equation Y = C + I + G + (X - M). Where C=140 + 0.9(Yd), I=400, G=800, X=600,...
M.4 1. Suppose the United States economy is represented by the following equations: Z=C+I+G YD=Y-T I = 30 C = 100 + 5YD G= 100 T = 200 a) Which variables are endogenous and which are exogenous? b) Calculate equilibrium levels of output, consumption and disposable income c) What is the multiplier for this economy d) What is the effect of increasing G by $100 on Y and the deficit
4. Consider the following model of the economy: C=c0+c1Yd ; T=t0+t1Y; and Yd= Y G and I are both constant. (a) Is t1 greater than or less than one? Explain. (b) Solve for the equilibrium output. (c) What is the multiplier? Does the economy respond more to changes in autonomous spending when t1 is zero or when t1is positive? Explain.
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....
3. Suppose that the economy is characterized by the following: C 160.6Yd, I150, G What is the current level of disposable income, consumption and saving? Assume output in this economy equal to 900, compute total demand. Is it equal to production? Explain. For output to increase to 1000, how much additional investment is needed? Given the above information, G is larger than T, what will happen if you raise T = 150? 150, T 100, NE 0. (Note; Yd is...
Suppose the GDP is given by the following: C = 500 +0.75(Yd) |_p = 375 G = 200 T = 400 Is the government running a surplus or a deficit and how much?
Question 91 1 pts Suppose: Z=C+l+G, YD=Y -T, C = 300 + 0.5YD, T= 1600, I =200 and G-2000. Given these variables, the equilibrium level of output for this economy is: 900 2500 1700 1800 3400
6. Suppose the economy is characterized by the following behavioral equations: C = 1,500+.6YD I= 2.000 - 10,000 G= 2,000 T= 2.000 a. At an interest rate of 10%, solve for equilibrium income (Y). disposable income (Y). consumption (C), investment (1), private saving, and public saving. b. What is the marginal propensity to consume in this economy? c. Now suppose that instead of taxes being a fixed quantity, taxes vary with income (as in many countries like the United States)...
+ 0.6* Y, and I-$900. Assume that the following equations fully describe an economy: C = $400 I) (1.5 pts.) How much is the Marginal Propensity to Consume (MPC) for this economy? 2) (1.5 pts.) How much is the Marginal Propensity to Save (MPS) for this economy? (4 pts.) W hat is the equilibrium level of income?