Answered: 1. In using the expenditure approach to…

1. In using the expenditure approach to GDP, consumption.... 2.The long -run aggregate supply curve is ? 3. National saving equals private saving plus government saving ,which inturn equals?

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter9: Aggregate Demand

Section: Chapter Questions

Problem 4.8P

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Question

1. In using the expenditure approach to GDP, consumption....

2.The long -run aggregate supply curve is ?

3. National saving equals private saving plus government saving ,which inturn equals?

4. The mpc and mps measures charges in consumption expenditure and saving that result from changes in ?

5. The sum of the components aggregate expenditure that are not influence by real GDP is called ?

Definition Definition Total supply of goods and services in an economy at a certain price level in a specific time period.

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During 2019, a country reported that its real GDP increased by $3.0 billion. The multiplier for this economy is known to be equal to 10.Which of the following might have caused the increase in real GDP? Question 12Answer a. Exports increased by $0.3 billion. b. Investment decreased by $0.3 billion. c. Exports decreased by $0.3 billion. d. Imports increased by $0.3 billion. e. Government expenditure on goods and services increased by $3 billion.
3
1. The mpc and mps measures charges in consumption expenditure and savings that result from changes in ? 2. The sum of the components of aggregate expenditure that are not influenced by real GDP is called?
What is the expenditure multiplier in this economy? Planned Government Net Exports Aggregate Change in Real GDP (Y) Consumption (C) Investment (ı') Purchases (G) (NX) Expenditures (AE) Inventories 10000 8200 800 11000 9000 600 12000 9800 13000 14000 15000 800 Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a 3 4 C d 10
Exercise 4. Imports and the multiplier. The consumption multiplier tries to capture the idea that individuals increase their consumption expenditures when their income increases, even when it is only a short-term increase and their life time income didn't change. However, individuals not only consume domestic products but also, they import part of their consumption. Therefore, if domestic consumption reacts to changes in current income, then it is natural to think that consumption of foreign goods should increase as well. For example, when the economy is booming, imports usually rise. To incorporate this channel into the model, suppose the import equation is given by Mt =āmīt + xm Ỹt Ỹt are described by equations in the previous exercise It = āƒŸt — b(R₁ − ñ) Yt, Ct =ācīt + x Ỹt Ỹt. The other categories of expenditures follow the same rules as in class. a) Derive the IS curve for this new specification. b) What is the economic explanation for why the parameter xm shows up in the…
16. Find consumption expenditure from the following National Income =Rs. 5000 Autonomous Consumption = Rs. 1000 Marginal Propensity to Consume = 0.8 %3D
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6. Use the following data to work Problems (a), (b), and (c). You are given the information in the table about the economy of Australia. Disposable income Saving (billions of dollars per year) -5 100 20 200 45 300 70 400 95 a. Calculate the marginal propensity to save. b. Calculate consumption at each level of disposable income. c. Calculate the marginal propensity to consume.
please answer in text form and in proper format answer with must explanation , calculation for each part and steps clearly
1. The positive relationship between consumption expenditure and disposable income can be shown by a positive slope of consumption curve. Answer: Reason: O Accessibility: Investigate hp
a. What is the value of the MPC?b. WhatisthevalueoftheMPS?c. What is the value of the multiplier?d. What is the amount of unplanned investment at aggregate output of 300, 900, and 1,300?
How will an increase in taxes applied to businesses affect the GDP based on the Expenditure Approach? O a. Negative effect on net exports O b. Negative effect on the gross domestic capital formation O c. Increase in government's budget O d. Positive effect on private consumption