C = 250 + .8 Yd T = 100
I = 275
G = 175
X = 65
M = 70
TE = A + MPC*Y If you can not easily see this in your algebra in part (a), simply take the given information and re-derive the equation by collecting like terms and simplifying.
Given the following information about a nation’s economy, answer the questions below. C = 250 +...
Given the following information for the Macro Economy answer the following questions. In this economy we have an MPC equal to 0.60, Autonomous Consumption of $100 billion, Planned Investment (I) of $1,000 billion, Government Spending (G) of $1,200 billion and Net Taxes (T) of $500 billion. a) Fill in the missing data in the table below (all the numbers are in billions). Y T Yd C S AE $2,000 500 1,500 1,000 1,000 3,200 $3,000 500 2,500 1,600 1,400 3,800...
Given the following information for the Macro Economy answer the following questions. In this economy we have an MPC equal to 0.60, Autonomous Consumption of $100 billion, Planned Investment (I) of $1,000 billion, Government Spending (G) of $1,200 billion and Net Taxes (T) of $500 billion. a) Fill in the missing data in the table below (all the numbers are in billions). Y T Yd C S AE $2,000 500 1,500 1,000 1,000 3,200 $3,000 500 2,500 1,600 1,400 3,800...
uestion #1:Solving for the Goods MarketSuppose an economy can be described by the following set of equations:C = 160+(0.6)YDI = 150G = 150T = 100YD= Y -TNX = 0 (g) What is the marginal propensity to consume (mpc)?(h) What is the marginal propensity to save (mps)?(i) Calculate the multiplier. [Hint: The multiplier = 1/(1-mpc)](j) Calculate the level of autonomous spending. [Hint: Autonomous spending = C0+ I + G –(mpc x T)] Question #1: Solving for the Goods Market Suppose an...
ONLY 5-11 BELOW A5-10. Suppose the following aggregate expenditure model describes an economy: C = 100 + (5/6)Yd T = (1/5)Y I = 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...
Assume the following Keynesian model: AE = C + I + G + (X - M) C = 500 + .9Yd I = 300 G = 100 X = 150 M = 50 + .1 Yd T = 100 a. Find the equilibrium level of GDP. b. Using a “Keynesian cross” (or 45-degree line) diagram, show graphically the equilibrium in part a). c. What is the spending multiplier in this model? Tax multiplier? d. Show that leakages are equal to...
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,...
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...
Could you please help me with 1a-c. Pictures below. It would be greatly appreciated. Thankyou so much. 1.a) b) c) Use the information below for a four sector economy, answer the following questions: - 300 +0.75 Yd = = DELUXE 150 400 = Disposable Income GDP Consumption Taxes Investment Exports Imports Full Employment GDP Equilibrium Income 150 2,691 = YT Part 1: What is the value of autonomous expenditures Number Part 2: What is the slope of the aggregate expenditure...
3. You are given the following information about the economy: autonomous consumption = $300 billion planned investment = $300 billion government spending = $500 billion mpc = .8 imports = $200 billion exports = $500 billion a. Using the values above, what is the equation for the consumption function? b. Using the values above, what is the income/spending multiplier? c. What is the value of Net Exports? d. Is there a trade surplus or deficit? Of how much?...
You are given the following information about an economy(interest rate is measured in percentage points). A five percent interest is r = 5. 1. You are given the following information about an economy (note: the interest rate is measured in percentage points. A five percent interest is r5): (M/P) = 100 (M/P)"=0.2 Y - 10 C = 150+ 0.667 YD-10 I=200 - 10r + 0.1 Y G=200 NX = 50 | T = 0.25 Y YD = Y-T A. (i)...