A change in which of the following causes a movement along – not a shift in – the IS curve? Select one: a. autonomous investment O b. autonomous net exports O c. taxes O d. all of the above O e. none of the above
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- CThe following equations describe an economy C = 100 + 0.75 Y. I = 50 – 25i where C' is aggregate consumption , Y is disposable income, I is aggre gate investment, Tis taxes, G is go vernment purchases and i is the int erest rate. Derive the IS curve for th T= G= 50 e economy.Economics PIODiem set is dde OIT AprTO 1. Let the following equations characterize the economy (note the addition of a tax rate on output): Y = 500 C = 60 + 0.8(Y-T) |= 30 - r G = 100 T = 0.4Y a) Calculate national saving, private saving, and public saving. b) Obtain the mathematical expression for the AD in this particular economy. Draw the graph. c) Determine the equilibrium interest rate (you can use the loanable funds market). Draw the graph for the lonable funds market. d) If Government spending increases to 120, what is the effect on income? Draw the new equilibrium in a graph (old and new in same graph).One reason for an increase in aggregate demand (AD) on the net exports side is A a rise in the expected rate of return. B a rise in interest rates. C an increase in foreign demand. D an increase in the relative price of U.S. goods.
- Products that are in the process of production but are finished and sold by the end of the year are counted Select one A a component of investment spending Ba component of government purchases Ca component of net expovis D. a component of consumption spendingSuppose you are given the following information for an economy without government spending, exports, or imports. Cis desired consumption, Iis desired investment, and Y is inoome. Cand i are given by C=400 +06Y 1-300 a. What is the equaion for the aggregate expendture (AE) function? (Round your response for the intercept tem to the nearest whole number and for the siope tem to one decimal place) AE CYUrgently need Suppose jane Purchases a $600000 BMW that was produced in Germany. Which of the following describes how this would be recorded in Canadian GDP accounts. a. Net Exports Increase $60,000 b. Net Exports decrease $60,000 c. Investment increases by $60,000 and net exports increase by $60,000 d. Consumption increases by $60, 000 and net exports decreases by y$60,000 Please fully explain the answer you choose.
- ces IC raw ill ady Answer five questions given the following data for 2019: The Equivalence of Expenditure and Income (in Billions of Dollars) Expenditure C: Consumer goods and services I: Investment in plants, equipment, and inventory G: Government goods and services X: Exports M: Imports GDP: Total value of output b. Gross private investment d. Exports % c. Total government purchases e. Imports FI Instructions: Enter your responses as a percentage rounded to one decimal place. Calculate the following as a percentage of GDP for 2019: a. Personal consumption expenditures % % % EL Q Search @ F2 A $14,561 # 3,744 3,754 2,504 F3 (3,136) $21,427 F6 A $11,434 2,075 1,658 778 645 1,494 3,463 (120) $21,427 Q F7 & PrtScn 18. * Home F9 FK The following equations describe consumption, investment, government spending, taxes, and net exports in the country of Economika. In Economika, equilibrium GDP is equal to $. (Round your asnwer the nearest dollar.) If real GDP in Economika is currently $4,850, which of the following is true? A. There will be an unplanned decrease in inventories, and real GDP will increase next period. OB. There will be an unplanned increase in inventories, and real GDP will increase next period. OC. There will be an unplanned decrease in inventories, and real GDP will decrease next period. O D. There will be an unplanned increase in inventories, and real GDP will decrease next period. OE. There will be no unplanned change in inventories, and real GDP will stay the same next period. C=200+0.80(Y-T) 1=400 G=350 T=350 X = 100Which of the following is a leakage from the circular flow of income and expenditure in South Africa? Select one: a. A decision by a major supermarket chain to sell Danish beer. b. The sale of export fruit to the European Union. c. Government purchases of textbooks for state-run schools. d. Investment by South African Breweries in a new brewery. e. Defence expenditure by the South African government, via contracts with local military suppliers.
- A. Place each of the following transactions in one of the four components of expenditure: consumption, investment, government purchases, and exports/imports. Island Manufacturers (Jamaica) sells furniture to the Jamaican Government. Island Manufacturers (Jamaica) builds a new line of home furniture to be sold next year.What is the equilibrium in this economy? Planned Change in Net Exports (NX) Aggregate Expenditures (AE) Government Real GDP (Y) Consumption (C) Investment (1')| Purchases (G) Inventories 1500 1100 250 1600 1175 100 1700 1250 1800 1900 2000 75 Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a 1500 b 1600 1700 d. 180010. T/F/U. Fear of a recession causes a decrease in investment spending—I— which in turn impacts v. Draw a graph consistent with your answer.