2. From what was learned in class, explain what the values of the slope and vertical intercept ofthe aggregate consumption function mean from an economic perspective.Income-expenditure equilibriumUsing the data in the following table to complete the following questions.GDPYDPlanned(billions of dollars)$0$0$200$1004004005001008008008001001,2001,2001,1001001,6001,6001,4001002,0002,0001,7001002,5002,5002,0001003,0003.0002,3001001. Complete the columns for AEPlanned and unplanned in the table.2. What is the value of the MPC?3. What is the aggregate consumption function?AEPlannedUnplanned4. What is the equation for the planned aggregate expenditure function?4.5. What is the value of income-expenditure equilibrium GDP, (Y*)?6. Explain in economic terms what happens when not in the income-expenditureequilibrium? Both when GDP > AE planned and GDP < AE planned. For each situation whatneeds to happen to move the economy toward equilibrium?.

2. What is the value of the MPC?The marginal propensity to consume (MPC) is the change in…

Answered: 2. From what was learned in class,…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1. An increase in the desire to save leads to a decrease in gross domestic product. True or false 2. An increase in investment leads to an increase in gross domestic product. Equilibrium occurs when the forces of expansion and contraction are in equilibrium, that is, when savings are greater than the desired investment. True or false 3. The term aggregate expenditure indicates how the aggregate quantity of goods and services demanded depends on the average price level. True or false
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
Suppose that an economy consists of only two individuals. Trevor has $1150 available to spend on goods. He decides to purchase $210 worth of produce from Juanita in the current quarter. No other economic activity takes place during the current quarter. Using this information, answer the questions. For the current quarter, what is the economy's income? $ For the current quarter, what is the economy's expenditure? In an economy, how are income and expenditure related? Income is greater than expenditure. O Income is less than expenditure. They are unrelated. O They are equal.
The slope of the line between points a and b is 4 .25 -4 -.25
14
1. The economy's income and expenditure The following diagram presents a circular-flow model of a simple economy. The outer set of arrows (shown in green) shows the flow of dollars, and the inner set of arrows (shown in red) shows the corresponding flow of inputs and outputs. Markets for Goods and Services A-Z Firms Households Markets for Factors of Production Based on this model, firms earn revenue when purchase v in markets for goods and services. Suppose Beth earns $550 per week working as an analyst for A-Plus Accountants. She uses $10 to order a mojito cocktail at Little Havana. Little Havana pays Andrew $325 per week to wait tables. Andrew uses $275 to purchase tax services from A-Plus Accountants. Identify whether each of the following events in this scenario occurs in the market for factors of production or the market for goods and services. Market for Factors of Production Market for Goods and Services Event MacBook Air
Please answer the correct question please ASAP Don't answer by pen paper please explain
Complete questions 5-6
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 .
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…
4. a) Draw a TP-TE (or Keynesian cross) graph for South Africa. Suppose Real GDP is $425 billion while the Real GDP where TE=TP is $475 billions. total, Expenditure (billions) TE-TH HEL th I 1 45 425 Q2 475 Q1 TP - TE total Production (billions) b) If Real GDP is $425 billion, what will happen to inventories, to firm's production and to the Real GDP? Inventories will decrease and Production will increase GDP increases to $475 billion and real
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