b. The value of equilibrium income is $
600
c. At equilibrium, the value of total injections is
$ _____ and of total leakages is $
______
d. The value of the MPE in Arkinia is ____ . Round your answer to 2
decimal places.
e. The value of the multiplier in Arkinia is ____ . Round your
answer to 2 decimal places.
f. Suppose that exports from Arkinia were to increase by $90. Draw
the new aggregate expenditure function on the graph above, and
label it AE2. Remember to plot only the endpoints of
AE2.
g. The value of the new equilibrium income is $
800 , and at equilibrium, the value of net exports is
$ 50
I need help with the graph and question c,d,e. Thank You
Homework Answers
(c.) At equilibrium, the value of total injections is $280 and of total leakages is $280.
Explanation
Total injections = I + G + X
total injections = 50 + 180 + 50
Therefore, total injections = $280
Total leakages = T + S + IM
total leakages = 140 + 70 + 70
Therefore, total leakages = $280
(d.) The value of the MPE in Arkinia is 0.10.
(e.) The value of the multiplier in Arkinia is 1.72.
Explanation
Where, c = MPC, t = MTR and m = MPM
Add Answer to:
b. The value of equilibrium income is $
600
c. At equilibrium, the value of total...
The table below shows some of the expenditure amounts in the economy of Arkinia. The MPC,...
The table below shows some of the expenditure amounts in the
economy of Arkinia. The MPC, the MTR, and the MPM are all constant,
as are the values of the three injections.
a. Complete the table below.
Y
T
YD
C
S
I
G
X
IM
XN
AE
0
50
180
50
100
60
-5
50
180
50
30
200
60
130
10
50
180
50
300
80
195
50
180
50
40
400
100
40
50
180
50
50...
Check my world The table below shows some of the expenditure amounts in the economy of...
Check my world The table below shows some of the expenditure amounts in the economy of Arkinia. The MPC, the MTR, and the MPM are all constant, as are the values of the three injections. a. Complete the table below. I IM XN 30 Y T YD C $ II 50 100 60 -5 50 200 60 T T 130 | 10 | 50 300 88 TL 195 LEI 400 102 40 500 DI 325 OL 50 600 460 TD...
Potential GDP 1,000 AE AE. 800 700 600 ΔΑΕ Aggregate Expenditure (dollars) 400 200 AY 45°...
Potential GDP 1,000 AE AE. 800 700 600 ΔΑΕ Aggregate Expenditure (dollars) 400 200 AY 45° 0 0 200 400 600 700 800 1,000 Real GDP (billions of constant dollars) 11. Given the following Consumption Function as C = 350 +0.75 (Y); and actual equilibrium real GDP as $700; and full-employment real GDP as $800. The amount of government spending necessary to close up such GDP gap is: $20 $32.50 $30 $25 $27.50
11. Review the information in the table and use it to answer the two questions that...
11. Review the information in the table and use it to answer the two questions that follow. (x) (XN( CGX) (AE) (Y) 0 100 200 300 400 500 600 (1) 60 80 100 120 140 160 180 (Y) -60 20 100 180 260 340 420 (C) 5 65 125 185 245 305 365 (8) -65 -45 -25 -5 +15 +35 +55 (0) 75 75 75 75 75 75 75 (6) 160 160 160 160 160 160 160 (x) (IM) 100...
Potential GDP 1,000 AE, AE 800 700 600 - AAE Aggregate Expenditure (dollars) 400 200 AY...
Potential GDP 1,000 AE, AE 800 700 600 - AAE Aggregate Expenditure (dollars) 400 200 AY 45° 0 0 200 400 600 700 800 1,000 Real GDP (billions of constant dollars) 16. Given the following Consumption Function as C = 350 +0.75 (Y); and actual equilibrium real GDP as $700; and full-employment real GDP as $800. The amount of taxes that need to be cut to close up such GDP gap is: $33.33 -$35.33 -$30.33 cannot be computed based on...
Derive the aggregate expenditure function, and calculate the equilibrium real GDP.. Determine the expenditure multiplier using aggregate expenditure function slop value... What is the expenditure multiplier? ... Everything else the same, by how much do
Question#1A The following are details of the expenditure of a very small economy. All the autonomous expenditures are given in $ thousand. C = 200 + 0.8Yd I = 10 G = 50 T = 0.05Y X = 40 M = 0.1Y Derive the aggregate expenditure function, and calculate the equilibrium real GDP Determine the expenditure multiplier using aggregate expenditure function slope value Question#1B Suppose the slope of the AE curve is 0.80. i) What is the expenditure multiplier? ii) Everything else the same, by how much does equilibrium aggregate expenditure...
endrid-side Equiorum: Unemployment or Inflation? 1. Aggregate expenditure and income The following table shows consumption (C),...
endrid-side Equiorum: Unemployment or Inflation? 1. Aggregate expenditure and income The following table shows consumption (C), investment (1), government purchases (G), and net exports (X-IM) in a hypothetical economy for various levels of real GDP (Y). Assume that the price level remains unchanged at all levels of income. All figures are in billions of dollars. 550 Compute total expenditure for each income level, and fill in the last column in the following table. Y c 1 G X -IM Total...
ASSIGNMENT # 3 Actual aggregate expenditure or output (Y) (billions of $) Consumption (C) (billions of...
ASSIGNMENT # 3 Actual aggregate expenditure or output (Y) (billions of $) Consumption (C) (billions of $) Planned investment (billions of $) Government spending (G) (billions of $) Net exports (NX) (billions of $) Unplanned investment (inventory change) (billions of $) 500 300 150 100 50 600 350 700 400 800 450 900 500 For the table shown, answer the following questions: For each level of actual aggregate expenditure, calculate unplanned inventory investment. What is the equilibrium level of aggregate...
Fill in the missing values in the following table. Assume that the value of the MPC...
Fill in the missing values in the following table. Assume that the value of the MPC does not change as real GDP changes and that there are zero taxes. (Enter all values as integers) Real GDP (Y) $8,000 $9,000 $10,000 $11,000 $12,000 Consumption (C) $4,800 $5,400 $ 6,000 $ 6,600 $ 7,200 Planned Investment (U) $800 $800 $800 $800 $800 Government Purchases (G) $1,200 1,200 1,200 1,200 1,200 Net Exports (NX) - $200 - $200 - $200 - $200 -...
The following info rmation is available for a count Equilibrium and Fiscal Policy Consumption Function: C...
The following info rmation is available for a count Equilibrium and Fiscal Policy Consumption Function: C = 100 + 0.8(Y-T) 3,2 Net Taxes: T = 250 0 Planned Investment: I 200 2,8 Government Spending: G 300 The graph of the consumption function is shown as C 1.) Using the line drawing tool, draw the aggregate expenditure line. Label it AEt 2.) Using the point drawing tool, identify the equilibrium point. Label it E. 2, 3.) Using the line drawing tool,...
The table below shows some of the expenditure amounts in the
economy of Arkinia. The MPC, the MTR, and the MPM are all constant,
as are the values of the three injections.
a. Complete the table below.
Y
T
YD
C
S
I
G
X
IM
XN
AE
0
50
180
50
100
60
-5
50
180
50
30
200
60
130
10
50
180
50
300
80
195
50
180
50
40
400
100
40
50
180
50
50...
Check my world The table below shows some of the expenditure amounts in the economy of Arkinia. The MPC, the MTR, and the MPM are all constant, as are the values of the three injections. a. Complete the table below. I IM XN 30 Y T YD C $ II 50 100 60 -5 50 200 60 T T 130 | 10 | 50 300 88 TL 195 LEI 400 102 40 500 DI 325 OL 50 600 460 TD...
Potential GDP 1,000 AE AE. 800 700 600 ΔΑΕ Aggregate Expenditure (dollars) 400 200 AY 45° 0 0 200 400 600 700 800 1,000 Real GDP (billions of constant dollars) 11. Given the following Consumption Function as C = 350 +0.75 (Y); and actual equilibrium real GDP as $700; and full-employment real GDP as $800. The amount of government spending necessary to close up such GDP gap is: $20 $32.50 $30 $25 $27.50
11. Review the information in the table and use it to answer the two questions that follow. (x) (XN( CGX) (AE) (Y) 0 100 200 300 400 500 600 (1) 60 80 100 120 140 160 180 (Y) -60 20 100 180 260 340 420 (C) 5 65 125 185 245 305 365 (8) -65 -45 -25 -5 +15 +35 +55 (0) 75 75 75 75 75 75 75 (6) 160 160 160 160 160 160 160 (x) (IM) 100...
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endrid-side Equiorum: Unemployment or Inflation? 1. Aggregate expenditure and income The following table shows consumption (C), investment (1), government purchases (G), and net exports (X-IM) in a hypothetical economy for various levels of real GDP (Y). Assume that the price level remains unchanged at all levels of income. All figures are in billions of dollars. 550 Compute total expenditure for each income level, and fill in the last column in the following table. Y c 1 G X -IM Total...
Fill in the missing values in the following table. Assume that the value of the MPC does not change as real GDP changes and that there are zero taxes. (Enter all values as integers) Real GDP (Y) $8,000 $9,000 $10,000 $11,000 $12,000 Consumption (C) $4,800 $5,400 $ 6,000 $ 6,600 $ 7,200 Planned Investment (U) $800 $800 $800 $800 $800 Government Purchases (G) $1,200 1,200 1,200 1,200 1,200 Net Exports (NX) - $200 - $200 - $200 - $200 -...
The following info rmation is available for a count Equilibrium and Fiscal Policy Consumption Function: C = 100 + 0.8(Y-T) 3,2 Net Taxes: T = 250 0 Planned Investment: I 200 2,8 Government Spending: G 300 The graph of the consumption function is shown as C 1.) Using the line drawing tool, draw the aggregate expenditure line. Label it AEt 2.) Using the point drawing tool, identify the equilibrium point. Label it E. 2, 3.) Using the line drawing tool,...
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