Assume the economy is in equilibrium. Analyse the
effect of a cut in autonomous expenditure on economic
activity and the level of unemployment. You should use
a diagram to help illustrate your answer.
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Assume the economy is in equilibrium. Analyse the effect of a cut in autonomous expenditure on...
For the following economy, find autonomous expenditure, the multiplier, short-run equilibrium output, and the output gap. By how much would autonomous expenditure have to change to eliminate the output gap? C = 2,000 + 0.9 (Y – T ) I p = 2,000 G = 2,500 NX = 200 T = 2,000 Y* = 48,000 Instruction: Enter your responses as integer values. (please show how to do it if possible thank you) Autonomous expenditure: ___ . Multiplier:__ . Short-run equilibrium...
For a real Keynesian model of a mixed economy with a marginal propensity to consume equal to .8 and autonomous consumption equals 600 billion, planned investment equals 100 billion, government spending equals 300 billion, and taxes equal 300 billion: a. Calculate the equilibrium level of Ye or real output. b. Draw a diagram that illustrates the equilibrium condition for the model, the equilibrium level of output, and the level of autonomous spending. Be sure to carefully label your diagram, including...
Problem 25-08 (algo) For the following economy, find autonomous expenditure, the multiplier, short-run equilibrium output, and the output gap. By how much would autonomous expenditure have to change to eliminate the output gap? C = 2,000+ 0.8 (Y-T) 1P = 1,500 G = 3,000 NX = 200 T = 2.500 Y* = 23,000 Instructions: Enter your responses as whole numbers. Autonomous expenditure: Multiplier: Short-run equilibrium output: Output gap: Autonomous expenditure would need to (Click to select) Aby to eliminate the...
Consumption expenditure = $262,619.0 million Planned investment = $86,227.0 million Government expenditure = $113,601.0 million Export expenditure = $99,804.0 million Import expenditure = $97,424.0 million Autonomous taxes = $56,700.0 million Income tax rate = 28% Marginal propensity to save = 0.4 Marginal propensity to import = 0.1 Part (10) Illustrate the GDP gap using the AD-AS Model and the AE Model, if the natural level of income is estimated as $490,000 million. Part (11) If the government wants to close...
Aggregate expenditure is the total amount of spending in the economy that determines the level of the GDP. Components of aggregate expenditure are autonomous expenditure, planned private investments, government expenditure, and net exports. When autonomous expenditure increases or decreases, it has a multiplied effect on the GDP. Referring to the 10-year historical period that you chose for your final project, discuss an example of a change in autonomous spending. Research a government policy implemented during that time and discuss the...
Aggregate expenditure is the total amount of spending in the economy that determines the level of the GDP. Components of aggregate expenditure are autonomous expenditure, planned private investments, government expenditure, and net exports. When autonomous expenditure increases or decreases, it has a multiplied effect on the GDP. Referring to the 10-year historical period that you chose for your final project, discuss an example of a change in autonomous spending. Research a government policy implemented during that time and discuss the...
I CHOSE 1950-1960. Aggregate expenditure is the total amount of spending in the economy that determines the level of the GDP. Components of aggregate expenditure are autonomous expenditure, planned private investments, government expenditure, and net exports. When autonomous expenditure increases or decreases, it has a multiplied effect on the GDP. Referring to the 10-year historical period that you chose for your final project, discuss an example of a change in autonomous spending. Research a government policy implemented during that time...
1. Suppose below diagram illustrates the aggregate expenditure function of an economy. a. What is the value of the equilibrium output in this economy? b. What is the value of the MPC according to the aggregate expenditure function? c. What is the value of the multiplier? d. What is the unplanned change in inventory when the real GDP is $15 billion? e. Suppose the economy is producing the macroeconomic equilibrium output level. If there is an increase in autonomous expenditure...
i just need the graph An economy is described as follows: C = 3,000 + 0.5 (Y – T) I p = 1,500 G = 2,500 NX = 200 T = 2,000 Y* = 12,000 a. For the economy described above, find autonomous expenditure, the multiplier, short-run equilibrium output, and the output gap. Instructions: Enter your responses as whole numbers. Autonomous expenditure: Multiplier: Short-run equilibrium output: Output gap: b. Illustrate this economy’s short-run equilibrium on a Keynesian cross diagram. Instructions: On...
An economy is described as follows: C = 400 + 0.6(Y – T) I p = 200 G = 200 NX = 60 T = 100 Y* = 2,100 a. For the economy described above, find autonomous expenditure, the multiplier, short-run equilibrium output, and the output gap. Instructions: Enter your responses as absolute values. Autonomous expenditure: Multiplier: Short-run equilibrium output: There is (Click to select) a recessionary an expansionary no output gap in the amount of . b. Illustrate this economy’s short-run equilibrium on a...