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Question 25 1 pts What is the nation's Marginal Propensity to Consume? Y-AE AE = C...
1). Given a marginal propensity to consume = .8 (Ceteris paribus) and the government increases the level of transfer payments by $100, we should expect that the GDP will increase by a. $500. b. $80. c. $100. d. $400. 2). Suppose that actual GDP (Y) for France is 100 euros and: Consumption = 10 + .5Y Investment Spending = 5 Government Expenditure = 20 The Marginal Tax Rate (t) = .20 At these current levels, the size of the budget...
1. The Average Propensity to Consume: C/Y C/Yd delC/delYd delC/Y 2.MPS+MPC+APS+APC = 1 2 No way of knowing 0 3. A budget surplus is when T>G Then budget is balanced G>T T=G 4.Who sets the required reserve ratio? The required portion of assets that must be kept by banks The required portion of money that must be kept by banks The required portion of loans that must be kept by banks The required portion of deposits that must be kept...
The Average Propensity to Consume is defined as O C/Yd O delC/Yd O C/deld O delC/deled D Question 29 1 pts The two things that you can do with your disposible income are Investor Save Consume and and Save Borrow and Lend O Consume or borrow Question 30 1 pts The Phillips Curve suggest that there is There is no relationship between inflation and unemployment There is an inverse relationship between inflation and unemployment There is a direct relationship between...
D Question 30 1 pts Suppose that a nation's aggregate production function is equal to Y- 2/KVL. If K 25, and L 36, what is the value of Y? ○ 24.5 027 030 O 60
Worksheet on AE.docx Page 1 of 4 Worksheet on AE 1 Given the following information about a hypothetical economy, complete the table below. C - 200+.8 (Y-T) T+01100 G=0 (X - M) = 0 Unplanned Real GDP Y (Planned) Consumption C(Y) (Planned) Leakages Y-C(Y) =S+T (Planned) Injections I+G Total (Planned) Expenditures C(Y) +I+G+ (X-M) = AE Actual Injections (1 +G) + (Unplanned Changes in Business Inventories) Business Inventories Y - AE 500 1000 1500 2000 2200 2400 3000 3500 Worksheet...
Please answer a, b, c, d 1. For the following question, assume that the consumption function is: C = 200+ 0.75(Y – T) The investment function is: I = 200 – 2.51 Government spending is fixed at G = 100 and the government has a balanced budget. The liquidity function is: L(Y,r) = Y – 10r Nominal money supply is 1,000 and the price level is equal to 2. a) Find the planned expenditure function and plot it on the...
provide an explanation with a steps of the answer for each question please 1,600 Planned aggregate expenditure, AE (billions of dollars) OS 1,600 Aggregate output, Y billions of dollars) Figure 24.5 1) Refer to Figure 24.5. If the economy is in equilibrium and the government decreases spending by $200 billion, equilibrium aggregate output decreases to S billion. A) 1,400 B) 1,200 C) 1,000 D) 800 2) Refer to Figure 24.5. If the economy is in equilibrium and the government increases...
s. (2 PTS) Assume the following closed economy model: C-350+0,7 (Y 1 300 + 0,04%-30i G=330 ; T . 400 + 0.1Y (MP)"-1,4%. 60i M-4.610;P-2 Where C consumption, I- investment, Y- income, i-interest rate (in percentage ponts, 6, 7, 8 . .), О . government spending; (MP), demand for real balances, Me money supply a) Compute the equilbrium levels for income, the interest rate, consumption investment and the budget balance b) Suppose the goal of the govermnment is to increase...
Time Taken:1:17:34 Alexa Anger: Attempt 1 Question 1 (1 point) Consider the information in the table below for a hypothetical economy. Suppose government purchases increase by $800. What will be the new equilibrium level of real GDP? Provide your answer in dollars rounded to two decimal places. Do not include any symbols, such as "$"," %, or in your answer. Real GDP Consumption (Y) (C) Planned Investment Government Purchases (G) Net Exports (NX) (0) 10,000 11,000 12,000 13,000 14,000 8,500...
Question 75 1 pts Suppose C = 170 +0.60YD, I = 100 - 4i, Md = 0.75Y - 61, MS = 735, P-1, T = 200, G - 350. The equation for equilibrium in the goods market is: Y = 980 +81. Y-1250 + 101 Y = 1250 - 101. OY - 1250 +8i. Y=980-81.