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Worksheet on AE.docx Page 1 of 4 Worksheet on AE 1 Given the following information about a hypothetical economy,...
1. Suppose you are given the following information about Japan's economy: C = 150 + 0.8(Y-T)...
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...
hestion Completion Status: QUESTION Consider a private, closed economy where aggregate consumption C depends on aggregate...
hestion Completion Status: QUESTION Consider a private, closed economy where aggregate consumption C depends on aggregate income Y according to the equation C. 15 0.5 Y. where planned investment is IP - 15. Using the above information, complete the following table: Y c R AER_ where AEP stands for aggregate expenditure planned. 1) Suppose that the GDP initially is Y 50. Obtain the corresponding levels of savings S and unplanned investment Is Y = 40 an income. expenditure equilibrium? If...
10.) An economy has a marginal propensity to consume and Y* , income-expenditure equilibrium GDP,...
10.) An economy has a marginal propensity to consume and Y* , income-expenditure equilibrium GDP, equals $500 billion. Given an autonomous increase in plannėd investment of $10 billion, show the rounds of increased spending that take place by completing the accompanying table. The first and second rows are filled in for you. In the first row the increase of planned investment spending of $10 billion raises real GDP and YD by $10 billion, leading to an increase in consumer spending...
The graph models an economy in equilibrium with a real GDP of $180 billion. Suppose that...
The graph models an economy in equilibrium with a real GDP of $180 billion. Suppose that consumers' expectations about future incomes change, causing unplanned inventory investment to increase by $30 billion. Shift the planned agregate expenditure (AE) line to show the effect of this change. Planned aggregate spending (billions of dollars) 0 30 240 270 300 60 90 120 150 180 210 Real GDP billions of dollars) Planned aggregate spendin 0 30 60 90 120 150 180 210 Real GDP...
1. In a closed economy to have sustainable output, Aggregate Expenditures are equal to
1. In a closed economy to have sustainable output, Aggregate Expenditures are equal toa. Consumptionb. Consumption + Investmentc. Consumption + Investment + Govemmentd. Consumption + Investment + Net Exports2. The calculation 1 /(1-MPC) equalsa. Marginal Propensity to Saveb. Multiplierc. Aggregate Expenditured. Average Consumption3. In a closed economy, when Aggregate Expenditures equal GDP.a. Consumption equals investmentb. Consumption equals aggregate expenditurec. Saving = Planned Investmentd. Disposable income equals consumption minus saving4. Net exports are calculated asa. Importsb. Imports - Exportsc. Exports -...
12. The tax multiplier for the below economy would be domestic output AE, closed economy government...
12. The tax multiplier for the below economy would be domestic output AE, closed economy government 200 230 20 250 270 20 300 310 20 350 350 20 400 390 20 450 430 20 500 470 20 A) -2 B) -3 C) -4 D) -5 13. If the economy is operating at a point above the equilibrium point, then A) AE is greater than GDP B) GDP is greater than AE C) The economy is at a sustainable full employment...
5. The economy below would be characterized as a domestic output AE, closed economy government 200...
5. The economy below would be characterized as a domestic output AE, closed economy government 200 230 20 250 270 20 300 310 20 350 350 20 400 390 20 450 430 20 500 470 20 A) private closed economy B) private open economy C) closed mixed economy D) open mixed economy 6. If all forms of spending below are integrated into the economy, equilibrium GDP is domestic output AE, closed economy government 200 230 20 250 270 20 300...
1. Complete the table below where the cells are blank. (10 pts) Output Sensor Saving Inxstant...
1. Complete the table below where the cells are blank. (10 pts) Output Sensor Saving Inxstant Export Import ort GDP=DI Net Agg Age Unnind Output Invent Emploxmnt 250 260 310 15 330310 2. What number is unplanned inventories at output of $270 million? Explain what the unplanned inventories number means at that output level? (2 pts) 3. At $330 million of output what must happen in this open economy to reach equilibrium? (2 pts) 4. Equilibrium is achieved at what...
help with those problema please 19 trhough 23 please 19. a. Complete the table below. All...
help with those problema please 19 trhough 23
please
19. a. Complete the table below. All figures are dollar amounts. Assume planned investment - $25 and note that once planned investment is determined, it stays constant (in our model) regardless of the level of GDP. Remember that U.LI. unplanned inventory investment (which is Y - pl AE). Y=GDP pl AE U.I.I pl I 1310 1301 -16 25 1326 1320 1307 25 1330 17 25 1340 1319 21 25 1350 1325...
Economics 212: Principles of Macroeconomica Chapter 23 Problems ou are given the following data f...
Economics 212: Principles of Macroeconomica Chapter 23 Problems ou are given the following data for Freedonia: C 200 + 0.8Y 1 = 100 AE-Y (a) What is the marginal propensity to consume in Freedonia, and what is the marginal propensity to save? (b) Graph equations (3) and (4) and solve for equilibrium income. (c) Suppose investment rises to I'- 110. What is the new equilibrium level of income? What is the value of the investment multiplier? (d) Calculate the savings...
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...
hestion Completion Status: QUESTION Consider a private, closed economy where aggregate consumption C depends on aggregate income Y according to the equation C. 15 0.5 Y. where planned investment is IP - 15. Using the above information, complete the following table: Y c R AER_ where AEP stands for aggregate expenditure planned. 1) Suppose that the GDP initially is Y 50. Obtain the corresponding levels of savings S and unplanned investment Is Y = 40 an income. expenditure equilibrium? If...
10.) An economy has a marginal propensity to consume and Y* , income-expenditure equilibrium GDP, equals $500 billion. Given an autonomous increase in plannėd investment of $10 billion, show the rounds of increased spending that take place by completing the accompanying table. The first and second rows are filled in for you. In the first row the increase of planned investment spending of $10 billion raises real GDP and YD by $10 billion, leading to an increase in consumer spending...
The graph models an economy in equilibrium with a real GDP of $180 billion. Suppose that consumers' expectations about future incomes change, causing unplanned inventory investment to increase by $30 billion. Shift the planned agregate expenditure (AE) line to show the effect of this change. Planned aggregate spending (billions of dollars) 0 30 240 270 300 60 90 120 150 180 210 Real GDP billions of dollars) Planned aggregate spendin 0 30 60 90 120 150 180 210 Real GDP...
1. In a closed economy to have sustainable output, Aggregate Expenditures are equal toa. Consumptionb. Consumption + Investmentc. Consumption + Investment + Govemmentd. Consumption + Investment + Net Exports2. The calculation 1 /(1-MPC) equalsa. Marginal Propensity to Saveb. Multiplierc. Aggregate Expenditured. Average Consumption3. In a closed economy, when Aggregate Expenditures equal GDP.a. Consumption equals investmentb. Consumption equals aggregate expenditurec. Saving = Planned Investmentd. Disposable income equals consumption minus saving4. Net exports are calculated asa. Importsb. Imports - Exportsc. Exports -...
1. Complete the table below where the cells are blank. (10 pts) Output Sensor Saving Inxstant Export Import ort GDP=DI Net Agg Age Unnind Output Invent Emploxmnt 250 260 310 15 330310 2. What number is unplanned inventories at output of $270 million? Explain what the unplanned inventories number means at that output level? (2 pts) 3. At $330 million of output what must happen in this open economy to reach equilibrium? (2 pts) 4. Equilibrium is achieved at what...
help with those problema please 19 trhough 23
please
19. a. Complete the table below. All figures are dollar amounts. Assume planned investment - $25 and note that once planned investment is determined, it stays constant (in our model) regardless of the level of GDP. Remember that U.LI. unplanned inventory investment (which is Y - pl AE). Y=GDP pl AE U.I.I pl I 1310 1301 -16 25 1326 1320 1307 25 1330 17 25 1340 1319 21 25 1350 1325...
Economics 212: Principles of Macroeconomica Chapter 23 Problems ou are given the following data for Freedonia: C 200 + 0.8Y 1 = 100 AE-Y (a) What is the marginal propensity to consume in Freedonia, and what is the marginal propensity to save? (b) Graph equations (3) and (4) and solve for equilibrium income. (c) Suppose investment rises to I'- 110. What is the new equilibrium level of income? What is the value of the investment multiplier? (d) Calculate the savings...
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