A. Suppose that the economy is characterized by the following behavioral equations: • C= 160+ 0.6 Yd • I = 150 • G = 150 T = 100 a) Identify or solve the following: C1 (1-q₁) . Y Y,
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- A. Suppose that the economy is characterized by the following behavioral equations: • • C = 160+ 0.6 Yd I = 150 • G = 150 • T = 100 a) Identify or solve the following: • C1 • (1-C₁) . Y • Ya . C • multiplier • A . Z • Sprivate • SpublicAggregate Expenditures 800 600 400 200 0 15 04 Income Refer to the above graph to answer this question. What is the value of the multiplier in this economy? 200 400 600 800 1000 167 A AE 02 O Cannot be determined.Using the table below, answer the following question: Real GDP ConsumptionPlanned (Y) GovernmentNet Aggregate of Investment purchases Exports (G) (C) Expenditure (AE) (1) (NX) 650 85 195 90 320 690 750 145 195 90 320 750 850 205 195 90 320 810 950 265 195 90 320 870 Find the value of the multiplier in this economy? Show your calculations. Answer: Give your reasons A- в I Fr of II
- B. Suppose that the economy is characterized by the following behavioral equations: C = 240 +0.75 Ya I = 200 • • G = 200 • T = 150 b) If investment decreases by 50, ceteris paribus, identify or solve the following: ● C1 (1-q₁₂) Y • Ya • C • multiplier • A • Z • Sprivate SpublicB. Suppose that the economy is characterized by the following behavioral equations: C = 240 +0.75 Ya • I = 200 • G = 200 • T = 150 a) Identify or solve the following: C1 (1-q₁₂) . Y . C • multiplier . A . Z • Sprivate • SpublicWhat is the marginal propensity to consume in this economy? Planned Government Net Exports Aggregate Change in Real GDP (Y) Consumption (C) Investment (1') Purchases (G) (NX) Expenditures (AE) 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 0.65 0.75 0.85 d. 0.95
- Use the table below to answer the following questions. Real Consumptio GDP n $300 310 320 330 340 350 360 $290 298 306 314 322 330 338 (a) What is the size of the multiplier in this economy? Now, calculate the multiplier when the MPS is .5, .25, .10. What is the relationship between MPS and the multiplier? (b) If taxes were zero, government purchases were $10, investments $6, and net exports were zero, what is the equilibrium GDP? (c) If taxes are $5, government purchases are $10, investment is $6, and net exports are zero, what is the equilibrium GDP? (d) Assume that investment, net exports, and taxes are zero. Government purchases are $30, and the full-employment GDP without inflation is $330. How much must government spending be reduced to eliminate the inflationary expenditure gap?EV Text Predictions: On The table below shows some of the expenditure amounts in the economy of Arkinia. The MPC, the MTR, and the MPM are all constant, as are the values of the three injections. a. Complete the table below. W 8 ZIN 200 SAN 400 500 GOO Aggregate expenditures ($billions) 700 HANS 800 600 HOD 200 T GO 1541 100 Accessibility: Investigate YD GB 200 460 620 C 400 130 195 Income (Sbillions) 325 The Economy of Arkinia 455 600 Search 5 800 -3 10 40 100 Tools MAL I se A SB 50 Se 58 50 30 50 Sa Draw a 45° line (labelled Y) and the aggregate expenditure function, labelled AE1. Identify expenditure equilibrium with the letter et. Use the tool "et" to show the expenditure equilibrium. Plot only the endpoints of Y and AE. Once all points have been plotted, click on the line (not individual points) and a tool icon will pop up. You can use this to enter exact co-ordinates for your points as needed. G 180 AE₁ IMO 180 THIN 13 180 186 tac taid X 50 sa SAMSUNG 50 10 50 50 54 549 50 IM 40…DI, C and S Given the following income, spending, and savings data, please answer the following questions: Savings (S) Disposable Income (DI) 0 $ $ 50000 $100000 $150000 d. Consumption (C) $ 40000 $ 70000 $100000 $130000 a. Solve for savings at each level of disposable income (DI) and place the values in the blanks above. b. Solve for the marginal propensity to consume (MPC) between each disposable income level. c. Although you were not asked to do so in this example, whenever solving for the APC, you should find that the APC decreases as the DI rises. Why would the APC decrease when the consumption values continue to increase as disposable income increases? State the value for the break level of income.
- 1. Briefly describe the concept multiplier. 2.Briefly describe the concept extrapolation.Jhon was given a $2000 stimulus check. He will spend 75% of his money(which is 1500$). The next person will spend 75% of the 1500$ and so on and so forth. 1)How much total expenditure will result from the 2000$ stim check? 2)calculate the value of the multiplier.Define and Derive Multiplier and Accelerator.