3. (3.5 points) Assume that when' aggregate income (ie., aggregate output, or Y) increases by $120 million in the country of Intrometida aggregate consumption (C) there increases by $24 milion. a. Using the pieces of information just given, find the marginal propensity to consume (MPC) for the economy of Intrometidar What is the marginal propensity to save (MPS) Show your work. Express your answers as either fractions or the appropriate decimals.

3. (3.5 points) Assume that when' aggregate income (ie., aggregate output, or Y) increases by $120 million in the country of Intrometida aggregate consumption (C) there increases by $24 milion. a. Using the pieces of information just given, find the marginal propensity to consume (MPC) for the economy of Intrometidar What is the marginal propensity to save (MPS) Show your work. Express your answers as either fractions or the appropriate decimals.

Name: 3. (3.5 points) Assume that when' aggregate income (ie, aggregate out
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Description: 3. (3.5 points) Assume that when' aggregate income (ie, aggregate output, or Y) increases by $120 million in the countryof Intrometida aggregate consumption (C) there increases by $24 million.a. Using the pieces of information just given, find the m

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. Consider a closed economy without a government. If the GDP of theeconomy is $25,000 and the saving rate in the economy is 25 percent, theaggregate saving in the economy is ________.A) $3,320B) $6,250C) $8,000D) $8,650
3- Can you explain the Covid-19 pandemic's impact on the countries' GDPs during the epidemic time? Explain your reasoning clearly by using the concepts that you learned related with GDP. (Such as, aggregate expenditure analysis with a graphic.)
4. What do we mean when we talk about the export base of a region? How does an increase in the export base affect total employment? How does this relate to the multiplier? What factors limit the size of the multiplier within cities?
Question 1) a) In panel (a) the curve shifts upward, what could cause this? O Increase in G (govermment spending)O Decrease in HH wealth due to a decrease in housing pricesO An increase in the overall price levelo Areduction in govemment spending (G) b) Using Figure 2, if this economy is currently at Y1 and consumer wealth increases, then___O AD1 will shift to the left, reflecting a decrease in the real GDP at every price level.O AD1 willshift to the right. reflecting an increase in the real GDP at every price level.O an upward movement along the AD1 wiltake place., reflecting an increase in the price level.O a downward movement along the AD1 will take place, reflecting a decrease in the price level.
11 - : In an imaginary economy, if the disposable income is 200 and the consumption expenditure is 220, what are the savings? a) -20 B) -40 NS) -50 D) -10 TO) -30
1. Tbe 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 Firms Households Markets for Factors of Production Based on this model, households earn income when purchase in markets for factors of production. Suppose Megan earns $575 per week working as a d households Hedical Clinic. She uses $8 to get her car washed at Spotless Car Wash. Spotless Car Wash pays Larry $325 per week to wash cars. Larry firms ourchase medical services from the Medical Clinic. 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 Event Services Megan earns $575 per week working for the Medical Clinic. Larry spends $225…
(11) The slope of the consumption function is the __________________________ __________________________ __________________________.
2. The circular-flow model 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. Based on this model, households earn income when purchase in factor markets. Suppose Maria earns $775 per week working as a doctor for the Medical Clinic. She uses $8 to have breakfast at Dinah's Diner. Dinah's Diner pays Kevin $475 per week to work as a short-order cook. Kevin uses $250 to purchase medical services from the Medical Clinic. Identify whether each of the following events in this scenario occurs in the factor market or the product market. Event Factor Market Product Market Kevin spends $250 to purchase medical services from the Medical Clinic. Maria spends $8 to have breakfast. Kevin earns $475 per week working for Dinah's Diner.…
4. Which one of the following statements concerning the relation between the expenditure and income approaches is correct? A. The expenditure approach to measuring economic activity results in a higher figure than does the income approach. (over please) 3 B. The expenditure approach to measuring economic activity results in a lower figure than that of the income approach. C. The two approaches must be equal, because the value of a nation's output must be distributed among all its costs. D. There is no relation between the two, because each measure different things.
13. The circular-flow model 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 (sh in red) shows the corresponding flow of inputs and outpu Firms Markets for Goods and Services Markets for Factors of Production Based on this model, households earn income when in factor markets. purchase Suppose Ginny earns $600 per week working as a cook fo Wingies. She uses $9 to take a spin class at Silver's Gym. Silver's Gym pays Eric $325 per week to work as a trainer. uses $125 to purchase chicken wings from Wingies. Households Identify whether each of the following events in this scenar occurs in the factor market or the product market. Factor Market Product Market O O Event Eric earns $325 per week working for Silver's Gym. Ginny spends $9 to take a spin class. Ginny earns $600 per week working for Wingles. Ginny's labor Which of the elements of this scenario represent a flow fr…
4. Planned expenditure and income The following table shows consumption (C), investment spending (I), and government purchases (G), in a hypothetical economy for various levels of income. Also assume that there is an income tax rate of 25%, that base consumption is $100 billion, and that the MPC is 0.333, or 1/3. This economy is closed, with no international trade, therefore net exports are equal to zero and should not be considered. Use the given information to fill in disposable income, consumption, and planned expenditures in the following table. Income: Real Disposable (After Tax) Planned GDP Income C I, G Expenditures (Billions of (Billions of dollars) (Billions of (Billions of (Billions of (Billions of dollars) dollars) dollars) dollars) dollars) 100 50 150 100 50 150 200 50 150 300 50 150 400 50 150 500 50 150
3). Part (a) (b) full explain