please answer in text form and in proper format answer with must explanation , calculation for each part and steps clearly 4. C $400+ 0.5 Yd, I=$ 400, G = $ 1200, X = $ 200, M= 0.1 Y, T= 400a. What is the saving function? Draw the figures of consumption and saving functions.b. What is the net export function? Draw this figure.c. What is the AD function? Draw the figure of AD function.d. What is the equilibrium real GDP (Yeq)? What is the multiplier?

Let's solve each part of the question step by step: a. Saving Function (S): The saving function is…

Answered: 4. C $400+ 0.5 Yd, I=$ 400, G = $ 1200,…

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter10: Income And Expenditures Equilibrium

Section: Chapter Questions

Problem 2E

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From the information above, calculate the level of consumption and saving that occurs at the equilibrium level of income.
Total spending in the economy is equal to consumption plus investment plus government spending plus net exports. If households want to save and thus do not use all of their income for consumption, what will happen to total spending? Because total spending in the economy is equal to total income and output, what will happen to the output of goods and services if households wants to save more?
Real GDP Consumption Planned Investment Government Purchases Net Exports $5,000 $4,500 $500 $325 -125 6,000 5,300 $500 $325 -125 7,000 6,100 $500 $325 -125 8,000 6,900 $500 $325 -125 3 A Answer the questions based on the table below. The values are in millions of dollars. What is the equilibrium level of real GDP? What is the MPC? If potential GDP is $7,000 million, is the economy at full employment? If not, what is the condition of the economy? If the economy is not at full employment, by how much should government spending increase so that the economy can move to the full employment level of GDP?
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Assume that total expenditure E comprises the sum of government consumption, G, household consumption, C, and investment, I. Assume a closed macroeconomic system, so that income equals expenditure Y=E. If we define household saving, SH, as SH=Y-T-C, where Y is national income and T is total taxation, which of the following will be true? a. SH=I+G b. SH=I-G-T c. SH=I+(G-T) d. SH=I
1. Answer the following: A) In 2011 the United States economy had a GDP of $14,991 billion according to the United Nations. If consumption was $10,729 billion, government spending was $2,594 billion, and net exports was -$568 billion, how much was investment spending? B) In 2011 the United States economy had a GDI (Gross Domestic Income) of approximately $13,548 billion according to the Bureau of Economic Analysis. If wages were $8,340 billion, interest payments were $516 billion, and rent was $430 billion, approximately how much was remaining for profit?
4) Calculate the values for government purchases (G), private domestic saving (S), and private domestic investment (I) from the following information (all variables are in billions of dollars). National income Y = 5,200 Disposable income Consumption Budget Deficit Net Exports YD = 4,400 C = 4,100 BD = 150 NX = 110
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Consider the circular flow of expenditure and income in the Canadian economy. Which of the following is an injection into the circular flow? Select one: a. You make an online purchase from a U.S. retailer. b. Loblaws pays corporate income tax to the federal government. c. Bombardier exports subway cars to Mexico. d. Bombardier imports machine parts from Germany. e. You put $500 into your TFSA (tax-free savings account).
In the above table, at the $410 billion real domestic output (RGDP) level, which of the following would not occur? Select one: a. Real domestic output and aggregate expenditure would grow until they reach an equilibrium. b. Businesses would produce less c. Aggregate expenditure exceeds RGDP d. Inventories would decrease unplanned way
Click on the icon to read the news clip, then complete the following steps. Business inventories fall when real GDP rises because 1800- 1600- Aggregate expenditure (billions of 2002 dollars) ○ A. inventories are falling from above target to their target levels 1400- B. firms put more production time into producing consumption goods and services OC. firms put more production time into producing exports 1200- OD. both B and C are correct 1000- The graph shows the aggregate planned expenditure curve. Draw a new AE curve to show the effect of an increase in exports and business investment. Label it AE₁. 8004 800 1000 1200 1400 45 degree line G AE 1600 1800 Draw a point at the new equilibrium expenditure. Draw an arrow along the new AE curve to show the effect of the increase in real GDP on consumption expenditure. Real GDP (billions of 2002 dollars) >>> Draw only the objects specified in the question. - News clip Business Inventories Decline, GDP Rises Real gross domestic product (GDP)…

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