All numbers except variable 'b' is in billions of dollars. AE = C + I + G + (X - IM) a (autonomous consumption) = 10 b (MPC) = 0.8 I = 30 G = 20 (X - IM) = 10 A) What is equilibrium Y? B) What...
All numbers except variable 'b' is in billions of dollars.
AE = C + I + G + (X - IM)
a (autonomous consumption) = 10
b (MPC) = 0.8
I = 30
G = 20
(X - IM) = 10
A) What is equilibrium Y?
B) What are savings at equilibrium?
C) What are injections at equilibrium?
D) If YF (income at full employment) is 300, what kind of gap exists, and how large? (inflationary or recessionary)
E) What are savings at YF?
F) What are injections at YF?
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All numbers except variable 'b' is in billions of dollars. AE = C + I + G + (X - IM) a (autonomous consumption) = 10 b (MPC) = 0.8 I = 30 G = 20 (X - IM) = 10 A) What is equilibrium Y? B) What...
Use the following information to answer questions 3 - 10 Y- C+IG+X-IM where: C= 200 +...
Use the following information to answer questions 3 - 10 Y- C+IG+X-IM where: C= 200 + 0.75 DI I = 100 G 100 X = 100 IM 200 Also assume that T Tr-0 full-employment real GDP (YF) $2000 Question 6 (10 points) The "oversimplified" expenditure multiplier equals: 0.25 0.75 4 5 10 Question 7 (10 points) What type of output gap exists, and how much is the gap equal to? recessionary gap equal to $200 inflationary gap equal to $200...
B,c,d,e please solve Suppose in the economy autonomous consumption - $100, autonomous investmen $120, government purchases...
B,c,d,e please solve
Suppose in the economy autonomous consumption - $100, autonomous investmen $120, government purchases G-$400 lump-sum taxes = $70, transfers Tr-$20, exports Er $150 autonomous imports im = $30, marginal propensity to consume mpc = 0.8, proportional income tax rate 1-20%, marginal propensity to invest mpi-0.1, and marginal propensity to imports mpm-0.4 (a) For this economy calculate (i) the amount of autonomous spending: (ii) the value of the spending multiplier; (iii) the equilibrium level of output; (iv) the...
3. You are given the following information about the economy: autonomous consumption = $300 billion ...
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?...
Figure 10-3 Potential Potential GDP GDP Real Expenditure Price Level C+I+X-IM) 7 5,500 6,500 Real GDP...
Figure 10-3 Potential Potential GDP GDP Real Expenditure Price Level C+I+X-IM) 7 5,500 6,500 Real GDP (billions of dollars per year) (a) 5,500 6,500 Real GDP (billions of dollars per year) (6) In Figure 10-3, both graphs (a) and (b) indicate that the economy is experiencing an) a. recessionary gap of RE. O b. inflationary gap of RG. O crecessionary gap of RG. d. inflationary gap of RE.
X. AE G Ig 40 с GDP 20 20 250 300 20 20 40 290 350...
X. AE G Ig 40 с GDP 20 20 250 300 20 20 40 290 350 20 20 40 330 400 20 20 40 370 450 20 20 40 500 410 20 20 40 550 450 20 490 40 600 20 40 650 530 a. Calculate the MPC, MPS and the multiplier. b. If full employment GDP is 600: i. Is there an inflationary gap or recessionary gap?
equilibrium output to S6 trillion. AS) that t. What is the price level at this new...
equilibrium output to S6 trillion. AS) that t. What is the price level at this new equilibrium? Chapter 12 Draw a graph to illustrate the desired aggregate expenditures of an economy whose participants have the following spending plans: 1. С $10+0.SY İ $20 G $30 X-M-$10 (a) What is the value of equilibrium output? (b) How much are consumers saving at equilibrium? (c) How much nonconsumer spending is being injected? (d) Assuming that the full-employment level of output is S300,...
1. Suppose that the MPC is equal to 0.8 and autonomous consumption spending is 400. Then the consumption function is given by a. C = 400 - 0.8Yd b. C = -400 + 0.2Yd c. C = 320 x Yd d. C = 400 + 0.8Yd e. C = 400 + 0.2Yd 2. Suppose th
1.Suppose that the MPC is equal to 0.8 and autonomous consumption spending is 400. Then the consumption function is given bya.C = 400 - 0.8Ydb.C = -400 + 0.2Ydc.C = 320 x Ydd.C = 400 + 0.8Yde.C = 400 + 0.2Yd2.Suppose that the MPC is equal to 0.8 and autonomous consumption spending is 400. At what level of income is saving = 0?a.400b.500c.2000d.320e.12003.The saving functiona.. is an upward-sloping straight line with a vertical intercept of -C0 and a slope of...
1. Assume a private, closed economy where Y = C + I, and C = 10...
1. Assume a private, closed economy where Y = C + I, and C = 10 + 0.9Y and I = 15. (Values in $ billions.) Solve algebraically for the equilibrium level of national income. Calculate the value of the multiplier. Solve graphically for the equilibrium income by constructing an accurate i) The 45 degree graph ii) savings/investment graph Now add the government sector to the model so that Y = C + I + G where C =...
DI=4- Tax Homework 3B - problem questions Answer all parts to question 1.2 and 3. Assume...
DI=4- Tax Homework 3B - problem questions Answer all parts to question 1.2 and 3. Assume transfer payments are zero C = 5000+ 0.2DI G-5000 I= 1000 X=1000 IM = 2000 Taxes = 500 mpus 1-0. 2 J1-0.2 0.9 70.0 mps-1-mpc tmpe = 0.2 14 (nx) G) + . - ) a. How much is MPS (1) as (o (6) + IY b. Calculate current equilibrium GDP (5) AE = 500002 NE TOOD +0:2 (4-1) COD 000 000 - 5600...
Answer all parts to get a good rating otherwise I will report you. Thank you for...
Answer all parts to get a good rating otherwise I will report you.
Thank you for your help.
Part 1.
Part 2.
Disposable income (trillions of 2000 dollars) 0.0 1.0 2.0 3.0 Consumption expenditure (trillions of 2000 dollars) 0.8 1.6 2.4 3.2 4.0 2) The above table has data on the consumption function in the nation of Mojo. 2) What is the amount of autonomous consumption expenditure? What is the marginal propensity to consume? a. b. Consumption Govemment Real GDP,...
Use the following information to answer questions 3 - 10 Y- C+IG+X-IM where: C= 200 + 0.75 DI I = 100 G 100 X = 100 IM 200 Also assume that T Tr-0 full-employment real GDP (YF) $2000 Question 6 (10 points) The "oversimplified" expenditure multiplier equals: 0.25 0.75 4 5 10 Question 7 (10 points) What type of output gap exists, and how much is the gap equal to? recessionary gap equal to $200 inflationary gap equal to $200...
B,c,d,e please solve
Suppose in the economy autonomous consumption - $100, autonomous investmen $120, government purchases G-$400 lump-sum taxes = $70, transfers Tr-$20, exports Er $150 autonomous imports im = $30, marginal propensity to consume mpc = 0.8, proportional income tax rate 1-20%, marginal propensity to invest mpi-0.1, and marginal propensity to imports mpm-0.4 (a) For this economy calculate (i) the amount of autonomous spending: (ii) the value of the spending multiplier; (iii) the equilibrium level of output; (iv) the...
Figure 10-3 Potential Potential GDP GDP Real Expenditure Price Level C+I+X-IM) 7 5,500 6,500 Real GDP (billions of dollars per year) (a) 5,500 6,500 Real GDP (billions of dollars per year) (6) In Figure 10-3, both graphs (a) and (b) indicate that the economy is experiencing an) a. recessionary gap of RE. O b. inflationary gap of RG. O crecessionary gap of RG. d. inflationary gap of RE.
X. AE G Ig 40 с GDP 20 20 250 300 20 20 40 290 350 20 20 40 330 400 20 20 40 370 450 20 20 40 500 410 20 20 40 550 450 20 490 40 600 20 40 650 530 a. Calculate the MPC, MPS and the multiplier. b. If full employment GDP is 600: i. Is there an inflationary gap or recessionary gap?
equilibrium output to S6 trillion. AS) that t. What is the price level at this new equilibrium? Chapter 12 Draw a graph to illustrate the desired aggregate expenditures of an economy whose participants have the following spending plans: 1. С $10+0.SY İ $20 G $30 X-M-$10 (a) What is the value of equilibrium output? (b) How much are consumers saving at equilibrium? (c) How much nonconsumer spending is being injected? (d) Assuming that the full-employment level of output is S300,...
DI=4- Tax Homework 3B - problem questions Answer all parts to question 1.2 and 3. Assume transfer payments are zero C = 5000+ 0.2DI G-5000 I= 1000 X=1000 IM = 2000 Taxes = 500 mpus 1-0. 2 J1-0.2 0.9 70.0 mps-1-mpc tmpe = 0.2 14 (nx) G) + . - ) a. How much is MPS (1) as (o (6) + IY b. Calculate current equilibrium GDP (5) AE = 500002 NE TOOD +0:2 (4-1) COD 000 000 - 5600...
Answer all parts to get a good rating otherwise I will report you.
Thank you for your help.
Part 1.
Part 2.
Disposable income (trillions of 2000 dollars) 0.0 1.0 2.0 3.0 Consumption expenditure (trillions of 2000 dollars) 0.8 1.6 2.4 3.2 4.0 2) The above table has data on the consumption function in the nation of Mojo. 2) What is the amount of autonomous consumption expenditure? What is the marginal propensity to consume? a. b. Consumption Govemment Real GDP,...
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