3. For a closed economy, the following data is given:50 + 0.8Y4ConsumptionC%3DInvestmentI70Government expenditureG =200Transfer paymentsTR100%3DRate of Income Taxt0.2Y(a) Write the reduced form of equation for equilibrium income.(b) Find out equilibrium income.(c) What is the value of multiplier ?

Answered: Image /qna-images/answer/e4bf6086-e358-472d-a23e-6a6fc70f2c39.jpg

3. For a closed economy, the following data is given: 50 + 0.8Y, Consumption C %3D Investment I 70 Government expenditure G 200 %3D Transfer payments TR = 100 Rate of Income Tax 0.2Y t = (a) Write the reduced form of equation for equilibrium income. (b) Find out equilibrium income. (c) What is the value of multiplier ?

3. For a closed economy, the following data is given: 50 + 0.8Y, Consumption C %3D Investment I 70 Government expenditure G 200 %3D Transfer payments TR = 100 Rate of Income Tax 0.2Y t = (a) Write the reduced form of equation for equilibrium income. (b) Find out equilibrium income. (c) What is the value of multiplier ?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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This problem has been solved! See the answer Explain the relationship between the aggregate expenditures model in graph (A) below and the aggregate demand–aggregate supply model in graph (B) below. In other words, explain how points 1, 2, and 3 are related to points 1’, 2’, and 3’.
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2. Public consumption of a country (two sectors) is indicated by the function C = 60 + 0.4Y. Calculate:a. Find the saving function.b. If the investment that occurs is 300, determine the balance national income.c. What is the consumption of the people of the country if the national income is 400.d. How much is the savings of the people of the country if the national income is 400.e. Make a graphical sketch of the consumption and saving functions in one image. Please solve sub parts a,b,c thank u
Moving to another question will save this response. Quèstion 23 Assume the following consumption schedule: C= 20 + 0.9 Y, where C is consumption and Y is disposable income. At $1,100 level of disposable come: (show your calculations) a Find out the level of saving and consumption? ( b. How much are the APC and APS (to one decimal place)? c. If disposable income increased to $2,800 and saving is $345 now. What are MPC and MPS (to two decimal places)? J For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BIUS Paragraph Arial 10pt 三v 三v A v In X, 田田田国 ABC 三三 +, 旺困田田 |用

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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Assuming there is no government or foreign sector, [1 / 1- MPC] represents a. the consumption function.b. the saving function.c. the multiplier.d. break even income
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2. From what was learned in class, explain what the values of the slope and vertical intercept of the aggregate consumption function mean from an economic perspective. Income-expenditure equilibrium Using the data in the following table to complete the following questions. GDP YD Planned (billions of dollars) $0 $0 $200 $100 400 400 500 100 800 800 800 100 1,200 1,200 1,100 100 1,600 1,600 1,400 100 2,000 2,000 1,700 100 2,500 2,500 2,000 100 3,000 3.000 2,300 100 1. 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? AE Planned Unplanned 4. 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-expenditure equilibrium? Both when GDP > AE planned and GDP < AE planned. For each situation what needs to happen to move the economy toward equilibrium?.
Please answer d e and f. Thank you professor