Exercise 3 Consider the following model of the economy C 170 +0.6 (Y-T) に250 G-300 T...
1-5 We have the following model of the economy: (I)Y-C+S+T (2) E-C+I+G (3) Y E (4) C-(YD. CA (5) S-s(YD SA) (6) I=IA 7) G-GA (8) T TA (9) YD Y T (10) Deficit =G-T The following data for equilibrium values will help in this problem. G-800 I 30 T=650 Y'=5,000 Calculate 1. the equilibrium value of consumption 2. marginal propensity to consume (AC/AY) 3. the expenditure multiplier 4. The government budget now has an imbalance ofThis is a DEFICIT...
5 to 10 We have the following model of the economy () Y-C+S+T (2) E CI+G G-GA (8) T-TA 9) YD -Y - T (10) Defict G-T (4) C-(YD CA) (5) S=s(YD-SA) (6) I IA The following data for equilibrium values will help in this problem G= 80 300 S 450 T 650 Calculate 1. the equilibrium value of consumption 2. marginal propensity to consume (AC/AY) 3. the expenditure multiplier MPC t budget now has an imbalance of . This...
1) Suppose an economy is characterized by the following equations. Y = C+/+G Y = 10,500 G = 800 TA = 1000 S = 1600+ 0.1(Y-TA) + 20001 1 = 600+ 0.20Y - 30001 Where Y is real GDP, G is government purchases of goods and services, S is total national savings, is the nominal rate of interest and I is total investment. There are no transfers in this economy and agents can only consume or save their income. a)...
Answer the following questions using the aggregate expenditures model of the economy described below. C = 900 + 0.5 Yd T=95 1 = 300 G = 300 X = 350 M = 0.1 Y (a) What are the marginal propensity to consume Number , and the marginal propensity to import Number (b) What is the marginal propensity to save? Number (c) The saving function is: S = Number + Number Yd. (d) What is the value of Ye? Number (e)...
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
Consider the economy of Wiknam. The consumption function is given by C = 250+ 0.6(Y-T). a. Government purchases and taxes are both 100. In the accompanying diagram, graph the IS curve for r ranging from 0 to 8 by dragging and dropping the end points to the correct locations b. The money supply M is 2,875 and the price level Pis 5. In the accompanying diagram, graph the LM curve for r ranging from 0 to 8 by dragging and...
+ 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?
1.Given the following information about a closed economy, what is the level of investment spending and national saving, and what is the budget balance? There are no government transfers. GDP: $1,000 million T=$50 million C=$850 million G=$100 million 2.Given the following information about an open economy, what is the level of investment spending and National savings, and what are the budget balance and net capital inflow? There are no government transfers. GDP: $1,000 million G=$100 million C=$850 million X=$100 million...
please do the part b of the question 3. You are given the following information for Country Z C=Co + ci(1-t)Y INI G=G NX = X - my Country Z Dec 2018 Autonomous Consumption $20 trillion | Marginal Propensity to Consume 0.9 Marginal Tax Rate 0.25 Investment $200 trillion Government $200 trillion Exports $25 trillion Marginal Propensity to Import 0.07 April 2019 $20 trillion 0.9 0.25 $199 trillion $200 trillion $25 trillion 0.07 a) How much does the government of...
1. Suppose you are given the following information about Japan's economy: C = 150 + 0.8(Y-T) T = 0 Iplanned = 300 NX = 50 G = 200 a) Set up the aggregate planned expenditure function for Japan. (Write down the equation). b) Graph the aggregate expenditure function, using the diagram below. Be sure to label you graph. Carefully indicate the intercept. What is the slope of the line? c) Calculate equilibrium Real GDP (Y). d) Indicate the equilibrium on...