1. Briefly define the following terms and explain the relationship2. Ebetween them:. MultiplierMPC ...Actual investmentPlanned investmentAggregate expenditure.Aggregate output..... Real GDP.Aggregate income...inCHAPhabit. They have a rule that everyone saves exactly 25 percent ofincome. Assume that planned investment is fixed and remains at75 billion Yuck dollars.You are asked by the business editor of the Weird Herald, thelocal newspaper, to predict the economic events of the next fewmonths. By using the data given, can you make a forecast? Whatis likely to happen to inventories? What is likely to happen to thelevel of real GDP? Is the economy at an equilibrium? When willthings stop changing?7. T

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1. Briefly define the following terms and explain the relationship between them: MPC .... . Multiplier Actual investment Planned investment Aggregate expenditure. Aggregate output Real GDP Aggregate income

1. Briefly define the following terms and explain the relationship between them: MPC .... . Multiplier Actual investment Planned investment Aggregate expenditure. Aggregate output Real GDP Aggregate income

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Using the table below, answer the following question: Real GDP ConsumptionPlanned (Y) GovernmentNet Aggregate of Investment purchases Exports (G) (C) Expenditure (AE) (1) (NX) 650 85 195 90 320 690 750 145 195 90 320 750 850 205 195 90 320 810 950 265 195 90 320 870 Find the value of the multiplier in this economy? Show your calculations. Answer: Give your reasons A- в I Fr of II
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3. Categories of expenditures Darnell and Eleanor Cohen live in Conshohocken, PA. Their son, Jacques, owns his own plumbing business. For each of the following transactions that occur in their lives, identify whether it is included in the calculation of U.S. GDP as part of consumption (C), investment (I), government purchases (G), exports (X), or imports (M). Check all that apply. Transaction Darnell buys a sweater made in Guatemala. Darnell's employer assigns him to provide consulting services to an Australian firm that's opening a manufacturing facility in China. Eleanor gets a new video camera made in the United States. The Pennsylvania Department of Transportation, a state administration, fixes potholes along PA highway 23, which feeds into the center of Conshohocken. Jacques buys a new set of tools to use in his plumbing business. с □ I □ G □ X □ M □ □
Table 1 Real GDP Consumption Planned Investment Government Purchases Net Exports $2,000 $1,600 $250 $250 $100 2,500 2,000 250 250 100 3,000 2,400 250 250 100 3,500 2,800 250 250 100 Table 2 Real GDP Aggregate Expenditure Unplanned Change in Inventories Real GDP Will... (increase, decrease, or be in equilibrium) $2,400 2,500 3,000 3,500 Examine the Table 1 information provided and perform the following activities for Table 2: For each level of Real GDP, calculate aggregate expenditure, unplanned change in inventories, and indicate what will happen to GDP (increase, decrease or be in equilibrium). Explain how you derived the Aggregate Expenditure and Unplanned Change in Inventories Explain how the values in the Unplanned Change in Inventories column dictate what will happen to the Real GDP.…
Please answer the correct question please ASAP Don't answer by pen paper please explain
Use the figure below to answer the following questions. Aggregate Expenditure (billions of 2012 dollars) 400 360 320 280 240 200 160 120 80 80 40 45° line AE 0 40 80 120 160 200 240 280 320 360 400 Real GDP (billions of 2012 dollars) The economy depicted does not engage in international trade and has no government. Planned aggregate expenditure (AE) is equal to the sum of consumption expenditure (C) and investment (I). Investment is $ billion. If investment increases by $75 billion, then real GDP increases by $ billion.
Question Aggregate expenditure is the total amount of spending in the economy that determines the level of the GDP. Components of aggregate expenditure are autonomous expenditure, planned private investments, government expenditure, and net exports. When autonomous expenditure increases or decreases, it has a multiplied effect on the GDP. Referring to the 10-year historical period that you chose for your final project, discuss an example of a change in autonomous spending. Research a government policy implemented during that time and discuss the multiplier effect it had on the economy. I have choosen 1980-1989 in the US. **This is not a research paper - it's just a quick brief for a discussion board**
a. The key idea of the aggregate expenditure model is that in any particular year, the level of GDP is determined mainly by A) investment spending. B) export spending. C) government spending. D) the level of aggregate expenditure. b. U.S. net export rises when A) the price level in the United States rises relative to the price level in other countries. B) the growth rate of U.S. GDP is slower than the growth rate of GDP in other countries. C) the value of the U.S. dollar increases relative to other currencies. D) the inflation rate is higher in the United States relative to other countries.
The following table shows data for the economy before the decrease in saving. Suppose that the decrease in saving causes consumption to rise from $280 million to $320 million. Assume Say's law holds in this economy. Fill in the data for the economy after the decrease in saving. Before Saving Decrease After Saving Decrease Consumption (C) $280 million $320 million Investment (I) $200 million $ million Government Purchases (G) $250 million $ million Exports (EX) $500 million $500 million Imports (IM) $300 million $300 million As a result of the decrease in saving, total expenditures will .
TOPIC: Comparing total expenditures and total production
give answer woith explaantion
11:04 AM ECON 122 CAT ONE.docX Phoenix Files QUESTION ONE Is it desirable for a country to have a large gross domestic product? Explain (2 marks) QUESTION TWO You are given data on the following variables in an economy Government spending 300 Planned investment Net exports Autonomous taxes Income tax rate Marginal propensity to consume 0.5 a) Consumption (C) is 600 when income (Y) is equal to 1500. Solve for autonom ous consumption (2 ma rks) ii) 200 S 50 b) Solve for the equilibrium level of output in the following two scenarios: i) There is an income tax t=0.1, Edit 0.1 250 Q Search © | 46| 472 [ 66 c) In the economy with an income tax of 10%, what is the budget balance of the government? (2 marks) O X: × There is no income tax in the economy. Denote these two variables by Yw and YN respectively. (4 marks) d) Solve for the change in net exports that would bring the equilibrium output lev el in the economy with the income tax to the level of YN that you found in part b. specify both…