Homework Answers
Ans5) the correct option is $ 460
Ans9) the correct option is c) horizontal axis and the expected rate of return and the interest rate on the vertical axis.
Ans10) the correct option is d) shift the investment demand curve to the right.
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D Question 5 1 pts Use the following data to answer the next question. The disposable income (DI) and consumption...
Based on the data below, calculate the Average Propensity to Consume at a disposable income of...
Based on the data below, calculate the Average Propensity to Consume at a disposable income of $500 Aggregate Disposable Income Consumption $ billions) $ billions) so $80 $100 $200 $300 $400 $500 $160 $220 $300 $380 $460 0.80 O$80 0.08 0.92 2.5 pts D Question 31 If disposable income increases from $450 to $470 bi propensity to save (MPS)? llion and savings increases from $15 to $20 billion, what is the marginal 0.25 0.02
Macroeconomics Assignment 2 1. The table shows disposable income and consumption expenditure in an economy. Use...
Macroeconomics Assignment 2 1. The table shows disposable income and consumption expenditure in an economy. Use the table to work Problems A and B. Disposable Consumption income expenditure (Billions of dollars) 800 1,000 A. Calculate saving at each level of disposable income. Over what range of disposable income does consumption expenditure exceed disposable income? Calculate autonomous consumption expenditure. B. Calculate the marginal propensity to consume. At what level of disposable income will savings be zero? If expected future income increases,...
. 1. The data below pertain to a hypothetical private economy. Disposable Income (Y) Consumption (C)...
.
1. The data below pertain to a hypothetical private economy. Disposable Income (Y) Consumption (C) $ 0 $ 60 100 130 200 200 300 270 400 340 Use the above data to answer the questions below: 1. Write the linear equation representing the economy's consumption schedule. Clearly show your steps and calculations. 2. With your equation in (1), calculate the economy's consumption at $385 level of disposable income. Clearly show your steps and calculations. 3. Estimate the economy's average...
A,B,C,D Given this information, answer the following questions: A) How much will consumption increase if disposable...
A,B,C,D
Given this information, answer the following questions: A) How much will consumption increase if disposable income increases by $400? Show your work. B) Suppose there is a decrease in investment of S1,200. What will be the total decrease in Real GDP caused by this decrease in investment? Show your work. C) If autonomous consumption is S100, write the consumption function of this economy. D) If the economy's savings rate decreases, how will this most likely affect the MPC (increase,...
need help Question 9 (1 point) Use the figure below to answer the following questions. Price...
need help
Question 9 (1 point) Use the figure below to answer the following questions. Price level (GDP dellotor, 2007- 100 LAS 110 SAS 100 320 360 400 440 480 520 Real GDP billions of 2007 dollars) Figure 10.3.1 Refer to Figure 10.3.1. As the economy automatically adjusts to long-run equilibrium, the A) SAS curve shifts leftward. O B) AD curve shifts rightward. OC) AD curve shifts leftward. OD SAS curve shifts rightward. O E ) LAS curve shifts leftward....
Use the following table to answer the next question. The following national income data for an...
Use the following table to answer the next question. The following national income data for an economy is in billions of dollars. Consumption $5,100 Investment =1,100 Transfer payments=1,050 Government purchases = 1,400 Exports = 850 Imports = 950 Net foreign factor income = 20 What are the net exports for this economy? a) 5950 billion b) $850 billion - $100 billion d) $100 billion Question 2 (4 points) е п
Use the data in the following table for a private closed economy to answer the next...
Use the data in the following table for a private closed economy to answer the next question. All figures are in billions of dollars. Domestic Output or Income (GDP = DI) Consumption $540 $540 560 555 580 570 600 585 620 600 640 615 660 630 The MPC and multiplier are, respectively 0.80 and 5. 0.75 and 4 0.75 and 1.33 0.80 and 1.25 Question 20 1 pts Use the following graph with data for a private closed economy to...
Question 12 1 pts The fraction, or percentage, of total income that is consumed is called...
Question 12 1 pts The fraction, or percentage, of total income that is consumed is called the break-even income. consumption schedule. marginal propensity to consume. average propensity to consume. Question 14 1 pts The effect of a decline in taxes on the level of income will differ somewhat from an increase in government expenditures of the same amount because tax declines tend to be more expansionary households may not spend all of an increase in disposable income. the MPC that...
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...
Based on the data below, calculate the Average Propensity to Consume at a disposable income of $500 Aggregate Disposable Income Consumption $ billions) $ billions) so $80 $100 $200 $300 $400 $500 $160 $220 $300 $380 $460 0.80 O$80 0.08 0.92 2.5 pts D Question 31 If disposable income increases from $450 to $470 bi propensity to save (MPS)? llion and savings increases from $15 to $20 billion, what is the marginal 0.25 0.02
Macroeconomics Assignment 2 1. The table shows disposable income and consumption expenditure in an economy. Use the table to work Problems A and B. Disposable Consumption income expenditure (Billions of dollars) 800 1,000 A. Calculate saving at each level of disposable income. Over what range of disposable income does consumption expenditure exceed disposable income? Calculate autonomous consumption expenditure. B. Calculate the marginal propensity to consume. At what level of disposable income will savings be zero? If expected future income increases,...
.
1. The data below pertain to a hypothetical private economy. Disposable Income (Y) Consumption (C) $ 0 $ 60 100 130 200 200 300 270 400 340 Use the above data to answer the questions below: 1. Write the linear equation representing the economy's consumption schedule. Clearly show your steps and calculations. 2. With your equation in (1), calculate the economy's consumption at $385 level of disposable income. Clearly show your steps and calculations. 3. Estimate the economy's average...
A,B,C,D
Given this information, answer the following questions: A) How much will consumption increase if disposable income increases by $400? Show your work. B) Suppose there is a decrease in investment of S1,200. What will be the total decrease in Real GDP caused by this decrease in investment? Show your work. C) If autonomous consumption is S100, write the consumption function of this economy. D) If the economy's savings rate decreases, how will this most likely affect the MPC (increase,...
need help
Question 9 (1 point) Use the figure below to answer the following questions. Price level (GDP dellotor, 2007- 100 LAS 110 SAS 100 320 360 400 440 480 520 Real GDP billions of 2007 dollars) Figure 10.3.1 Refer to Figure 10.3.1. As the economy automatically adjusts to long-run equilibrium, the A) SAS curve shifts leftward. O B) AD curve shifts rightward. OC) AD curve shifts leftward. OD SAS curve shifts rightward. O E ) LAS curve shifts leftward....
Use the following table to answer the next question. The following national income data for an economy is in billions of dollars. Consumption $5,100 Investment =1,100 Transfer payments=1,050 Government purchases = 1,400 Exports = 850 Imports = 950 Net foreign factor income = 20 What are the net exports for this economy? a) 5950 billion b) $850 billion - $100 billion d) $100 billion Question 2 (4 points) е п
Use the data in the following table for a private closed economy to answer the next question. All figures are in billions of dollars. Domestic Output or Income (GDP = DI) Consumption $540 $540 560 555 580 570 600 585 620 600 640 615 660 630 The MPC and multiplier are, respectively 0.80 and 5. 0.75 and 4 0.75 and 1.33 0.80 and 1.25 Question 20 1 pts Use the following graph with data for a private closed economy to...
Question 12 1 pts The fraction, or percentage, of total income that is consumed is called the break-even income. consumption schedule. marginal propensity to consume. average propensity to consume. Question 14 1 pts The effect of a decline in taxes on the level of income will differ somewhat from an increase in government expenditures of the same amount because tax declines tend to be more expansionary households may not spend all of an increase in disposable income. the MPC that...
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...
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