4.3 The following questions refer to this table:AggregateOutput/IncomePlannedInvestmentConsumption1,0001,5001,5001,8752,2502502502,0002,5003,0002502,6253,0002502503,5003,3752504,0004,5003,7504,125250250a. At each level of output, calculate saving. At each levelof output, calculate unplanned investment (inventorychange). What is likely to happen to aggregate output iftheeconomy produces at each of the levels indicated?What is the equilibrium level of output?b. Over each range of income (1,000 to 1,500, 1,500 to 2,000,and so on), calculate the marginal propensity to consume.Calculate the marginal propensity to save. What is themultiplier?c. By assuming there is no change in the level of the MPCand the MPS and planned investment jumps by 125 and issustained at that higher level, recompute the table. Whatis the new equilibrium level of Y? Is this consistent withwhat you compute using the multiplier?

a) Saving; S= Y-C Unplanned Investment= S-I Y=C+I Y C I S Y=C+I Unplanned investment 1000 1500…

Answered: 4.3 The following questions refer to…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1.2. In the table below is data for a hypothetical private-closed economy. Table 1 A Private Closed Economy Real domestic output (GDP=DI) (billions) Consumption (billions) Saving (billions) Investment (billions) Aggregate Expenditures (billions) $240 260 280 300 320 340 360 380 400 $244 260 276 292 308 324 340 356 372 $ -4 0 4 8 12 16 20 24 28 $16 16 16 16 16 16 16 16 16 $260 276 292 308 324 340 356 372 388 Recall, private means that there is no government and closed means that there is no foreign trade. Use the information in the Table 1 to analyze aggregate expenditures (AE) model below (Figure 1. Equilibrium in a Private Closed Economy). Figure 1. Equilibrium in a Private Closed Economy See the attached graph. 1.3. Identify the mistake and explain why the graph of the aggregate expenditures line does not correctly illustrate the economy's equilibrium. 1.4. Create a graph for the aggregate expenditures…
Refer to the figure below to answer the following questions. Real interest rate (percent per year) 4 3 2 1 0 15 20 PSLF 25 SLF DLF 30 Loanable funds (billions of 2007 dollars) In the situation above the government has a budget Private saving is $ billion. Investment is $ billion and national saving is $ billion.
10. Work It Out. Consider an economy described as follows: Y = = Y G T 1 1 Cam C = I C+I+G 8,000 2,500 2,000 1000+2/3 (Y - T) 1,200 100 r. a. In this economy, compute private saving, public saving, and national saving. b. Find the equilibrium interest rate. c. Now suppose that G is reduced by 500. Compute private saving, public saving, and national saving. d. Find the new equilibrium interest rate.
________ Is that type of investment which is not affected by change in the level of output or income
At an aggregate output level of $400 billion what is aggregate savings?
Assume an economy with 1000 consumers. Each consumer has income in the current period of 50 units and future income of 60 units, and pays a lump-sum tax of 10 in the current period and 20 in the future period. The market real interest rate is 8%. Of the 1000 consumers, 500 consume 60 units in the future, while 500 consume 20 units in the future. a) Determine each consumer's current consumption and current saving. b) Determine aggregate private saving, aggregate consumption in each period, government spending in the current and future periods, the current-period government deficit, of the quantity of debt issued by the government in the current period. c) Suppose that current taxes increase to 15 for each consumer. Repeat parts (a) and (b) and explain your results.
4. Assume that the economy is described by the following equations: Y=C+l+G, Y=8490, G-2719, T-2056, C-258+ 1/2(Y-T), I-400 + 40r. Private saving and the equilibrium interest rate are O Private saving: 2959; The interest rate: 47.4 O Private saving: 2296; The interest rate: 23.7 O Private saving: 2296; The interest rate: 47.4 O Private saving: 2959; The interest rate: 23.7
Tax systems and saving
table below shows levels of employment, output, consumption, and saving for a private closed economy. Possible Levels of Employment, Millions Real Domestic Output,Billions Consumption,Billions Saving,Billions 40 $ 240 $ 244 -$ 4 45 260 260 0 50 280 276 4 55 300 292 8 60 320 308 12 65 340 324 16 70 360 340 20 75 380 356 24 80 400 372 28 Instructions: Enter your answers as a whole number. Using the consumption and saving data above and assuming planned investment is $16 billion, answer the following questions: a. What are saving and planned investment at the $380 billion level of domestic output? Investment = $ billion
Classify each of the following scenarios listed in the table below using the macroeconomic definitions of saving and investment. Shen purchases a new townhouse in Hartford. Poornima borrows money to build an addition to a lab owned by her engineering firm. Manuel purchases a certificate of deposit at his bank. Valerie purchases stock in Tesqar, a biotech firm. Saving Investment O
Explain what the Global Investment Performance Standards (GIPS) are and carefully discuss three (3) reasons why they are needed. To be GIPS compliant, firms must adhere to all sections of the provisions within the GIPS standards. List and briefly explain (4) four provisions.
Please help with this from c and d. Please make it make sense because I have seen answers that dont seem right. With graphs as well if you can for the two.Consider an economy described by the following equations:Y=C + I +GY=7,000G=4000T=2,000C=150+0.75(Y-T)I=1,000-50ra. In this economy, compute private saving, public saving and national saving.b. Calculate the equilibrium interest rate. c. Now suppose the G rises by 1,000. Compute private saving, public saving, andnational saving.d. Calculate the new equilibrium interest rate.

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