Use the following information to answer the question
below.
C = 1000 + .8(Y-T)
I = 800
G = 1800
T = 1000
The equilibrium level of GDP for the above economy equals:
a.10000
b.14000
c.16000
d.20000
Use the following information to answer the question below. C = 1000 + .8(Y-T) I =...
Use the following macroeconomic model structure to answer the questions followed. 8 pts C = 300 + 0.8Yd; C = consumption function; Yd (Y-T) = disposable income I = 200; I = Investment G = 400; G = Government expenditure T = 200; T = Tax revenue Also assume that Yf = Full employment GDP (Potential GDP) = 5,000 8.1. The equilibrium GDP level (income) is _________. Hint: Ye = C+I+G a. 2,850 b. 3,700 c. 3,145 d. 3,800 8.2....
Question 5: Equilibrium in the goods market Use the following information to answer the question(s) below. C=250+.75YD I = 250 1. Y to video Mosantoni vigou nomor G= 200 que vol 1) y lo s odabrow ni inte bus T= 200 (i.e. taxes are autonomous or exogenous) where C=Consumption spending; Yp=disposable income; I=investment spending; G- government spending: and T-taxes paid minus government transfers received by consumers. Remember that Yp=Y-T). (a) Determine the equilibrium level of output and the equilibrium level...
1. Suppose an economy is represented by the following equations: C=500+.75(Y-T) I=1000 -50r (M/P)d=Y-200r G=1000 T=1000 M=6000 P=2 Use these equations to derive both the IS and LM curves. Suppose that a newly elected president cuts taxes by 20%. Assuming that the money supply is held constant, what is the equilibrium interest rate in this economy? Round your answer to the nearest tenth. Do not use a percent sign when entering your answer. Your answer should not be given as...
Income (Y) Consumption (C) Investment Expenditures (I) Government Expenditures (G) Net Export Expenditures (NX) Aggregate Expenditures (AE) $8000 12400 2000 3000 -1000 10000 14000 2000 3000 -1000 14000 17200 2000 3000 -1000 20000 22000 2000 3000 -1000 30000 30000 2000 3000 -1000 50000 46000 2000 3000 -1000 80000 70000 2000 3000 -1000 c.) What would be the new equilibrium income level if the government expenditures were increased to $9,000? What is the increased equilibrium level of income?
Income (Y) Consumption (C) Investment Expenditures (I) Government Expenditures (G) Net Export Expenditures (NX) Aggregate Expenditures (AE) $8000 12400 2000 3000 -1000 10000 14000 2000 3000 -1000 14000 17200 2000 3000 -1000 20000 22000 2000 3000 -1000 30000 30000 2000 3000 -1000 50000 46000 2000 3000 -1000 80000 70000 2000 3000 -1000 d.) If the government wants to increase the same amount of increased in equilibrium level of income through tax cuts, the government should decrease taxes by how much...
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...
Question 91 1 pts Suppose: Z=C+l+G, YD=Y -T, C = 300 + 0.5YD, T= 1600, I =200 and G-2000. Given these variables, the equilibrium level of output for this economy is: 900 2500 1700 1800 3400
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...
I need help with this.
1. In an economy which has a national income identity as the following; Y= C+ I + G + NX where C = 400 + 0.6 Yd,; 1 = 1000-4600 r, G-1240 T-200 +0.25 Y; NX-400-0.05Y-8 00 e ( ofcourse, Yd=Y-T) Where e- foreign currency/ domestic currency, and initially set at e 1.25+2.5R The money demand function is Md- 0.75 Y-7500 r, and money supply is set by the Central Bank at 450. All calculation...
Income (Y) Consumption (C) Investment Expenditures (I) Government Expenditures (G) Net Export Expenditures (NX) Aggregate Expenditures (AE) $8000 12400 2000 3000 -1000 10000 14000 2000 3000 -1000 14000 17200 2000 3000 -1000 20000 22000 2000 3000 -1000 30000 30000 2000 3000 -1000 50000 46000 2000 3000 -1000 80000 70000 2000 3000 -1000 b.) Show the equilibrium income with the help of graph by taking income demand on the horizontal axis and AE on the vertical axis.