a. Assuming the level of investment is $15 billion and independent of the level of total output, complete the following table and determine the equilibrium levels of output and employment in this private closed economy. Instructions: In the table below, enter your answers as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Possible Levels of Employment, Millions 35 40 45 50 55 60 65 70 75 Equilibrium GDP = $ Equilibrium level of employment = Real Domestic Output Consumption, Billions Saving, Billions (GDP = DI), Billions $230 250 270 290 310 330 350 370 390 MPC = MPS = billion b. What are the values of the MPC and MPS? million $239 255 Instructions: In part b, enter your answers rounded to 1 decimal place. 271 287 303 319 335 351 367

a. Assuming the level of investment is $15 billion and independent of the level of total output, complete the following table and determine the equilibrium levels of output and employment in this private closed economy. Instructions: In the table below, enter your answers as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Possible Levels of Employment, Millions 35 40 45 50 55 60 65 70 75 Equilibrium GDP = $ Equilibrium level of employment = Real Domestic Output Consumption, Billions Saving, Billions (GDP = DI), Billions $230 250 270 290 310 330 350 370 390 MPC = MPS = billion b. What are the values of the MPC and MPS? million $239 255 Instructions: In part b, enter your answers rounded to 1 decimal place. 271 287 303 319 335 351 367

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Would like all parts answered please; specifically parts (d,e,f)
1a. If the consumption function is C = 250 + 0.57Y and investment, I = RM450, calculate the equilibrium income in this two- sector economy. b. Given, C = 700 + 0.7Yd, compute MPS
Q.2
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Question 2 Refer to the information provided in Figure 23.9 below to answer the question(s) that follow. Aggregate expenditures ($ millions) 225 200 175 150 45° AE 100 200 300 Aggregate output ($ millions) Figure 23.9 a) Refer to Figure 23.9. Write the equation for the aggregate expenditure function (AE). Show your work. b) Refer to Figure 23.9. What is the equilibrium level of output in this economy? State the equilibrium condition used to determine this. c) Explain the forces that maintain/drive the economy to this equilibrium by considering what will happen at the following two levels of output, $300 million and $100 million. You will need to discuss changes in investment through unplanned inventories and the response of output. d) Refer to Figure 23.9. How will equilibrium aggregate expenditure and equilibrium aggregate output change as a result of a decrease in investment by $20 million? e)The interest rate is an exogenous factor that effects the level of investment in an economy.…
Refer to the graph for a private closed economy. At the $150-billion level of GDP: Select one: a. Aggregate expenditures are less than real GDP, so GDP will rise b. Aggregate expenditures are more than real GDP, so GDP will fall c. Aggregate expenditures are more than real GDP, so GDP will rise d. Aggregate expenditures will be equal to GDP, so there will be no change in GDP
- If an economy is in equilibrium when national income is $1000, and the level of autonomous expenditure is $600, what is the value of the marginal propensity to withdraw? - Imagine an economy where autonomous expenditure is $50, and the equilibrium level of national income is $125. How much would autonomous expenditure have to increase by to achieve full employment output of $150 ?
The following graph shows three total expenditure lines for an economy at three different price levels. AE130 corresponds to the price level of 130; AE110 corresponds to the price level of 110; AE150 corresponds to the price level of 150. The black line (which starts in the bottom left corner) is a 45-degree line illustrating the set of points for which real GDP and total expenditure are equal. 1. What is the level of equilibrium output at a price level of 110 is what? (First picture) 2. Plot aggregate demand curve in second picture
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Based on the chart in question 8.06, if investment rises from $120 to $130 and the price level is fixed. By how much will the equilibrium real GDP increase?
Question 888 M Full explain this question and text typing work only thanks