answer everything accordingly as you see it in pictures. For the last statement, the options are:1. Slope upward2. Slope downward3. Shift down4. Shift up ---### Understanding Economic Indicators: Disposable Income and Government PurchasesIn economics, understanding how various factors such as government purchases, consumption, investment, net exports, and aggregate expenditure vary with disposable income is crucial. The table below summarizes these relationships for two different levels of disposable income: $250 billion and $500 billion.| **Disposable Income** | $250 billion | $500 billion ||--------------------------------|--------------|--------------|| **Consumption** | $350 billion | $375 billion || **Investment** | $200 billion | $200 billion || **Government Purchases** | $200 billion | $200 billion || **Net Exports** | $125 billion | $115 billion || **Aggregate Expenditure** | $875 billion | $890 billion |From the table, we can observe how each of the components of aggregate expenditure shifts as disposable income changes. ### Plotting Government Purchases Against Disposable IncomeThe graph provided helps visualize the relationship between disposable income and government purchases. On the graph, the x-axis represents **Real Disposable Income (Billions of Dollars)** from 0 to 1000 billion, while the y-axis depicts **Real Final Exports (Billions of Dollars)** ranging from 0 to 400 billion. The user is instructed to use the blue curve to plot government purchases as a function of disposable income using the given data points:- For $250 billion in disposable income, government purchases are $200 billion.- For $500 billion in disposable income, government purchases remain at $200 billion.### Key Observations- **Government Purchases** are constant at $200 billion irrespective of the level of disposable income.This simplified representation allows students to understand the potential lack of correlation between changes in disposable income and government purchases over the provided range.---This format is suitable for an educational website, aimed at teaching students how to interpret economic data and represent it graphically. **Understanding Government Purchases**---**Question:**According to the table, government purchases are:- [ ] Autonomous with respect to disposable income- [ ] Responsive to changes in foreign incomes- [ ] Determined by bureaucrats- [ ] Responsive to changes in disposable income---**Explanation:**A cutback in spending on government programs, such as those that fund basic science research, would cause the government purchases function you drew previously to _______________ .---In this educational module, students are prompted to select the correct characteristic of government purchases based on a given table, and to understand the impact of cutbacks in government program funding on the government's purchase function.

In Keynesian economics when price levels in the economy are assumed to be fixed then the planned…

According to the table, government purchases are: O Autonomous with respect to disposable income O Responsive to changes in foreign incomes O Determined by bureaucrats O Responsive to changes in disposable income A cutback in spending on government programs, such as those that fund basic science research, would cause the government purchases function you drew previously to

According to the table, government purchases are: O Autonomous with respect to disposable income O Responsive to changes in foreign incomes O Determined by bureaucrats O Responsive to changes in disposable income A cutback in spending on government programs, such as those that fund basic science research, would cause the government purchases function you drew previously 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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Graphical and Intuitive Optimization Consider a consumer who must allocate their available income between the consumption of two goods, Beer and Pizza. Their preferences over Beer and Pizza adhere to the usual assumptions we have made about preferences. The indifference curve map below reflects their preferences and the budget constraint reflects current income and prices. In the simplest terms possible, define or explain the term "Marginal Utility of Beer" (MUB). In the simplest terms possible, define or explain the term "Marginal Rate of Substitution of beer for pizza" (MRSBP). In the simplest terms possible, intuitively explain the meaning of MUB/PB, where PB represents the price of one unit of Beer.
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) Suppose there are two goods, X and Y. The price of good X is $5, the price of good Y is $3, and your income is $60. Neatly graph your budget line and label the intercepts. (a) What is the slope of your budget line? (b) How many units of good Y do you give up per unit of good X? (c) Suppose the price of good X rises to $6, show what happens to the budget line and label any new intercepts. (d) What is the new slope of the budget line? How many units of good Y do you now give up per unit of good X? (e) Suppose the price of good X only rises to $6 once you have purchased six units of good X. In other words, it is $5 per unit for the first six units and $6 per unit thereafter. Make a new graph of this "kinked" budget constraint.
PROBLEM (1) Suppose a consumer has just enough money to afford the bundle of 3 apples and 2 oranges, and similarly she also has just enough money to afford the bundle of 2 apples and 4 oranges. (a) Denoting the number of apples with x and oranges with y, plot the two given bundles on a graph, and calculate the relative price of apples; px/ py. (b) If she buys only apples with her budget, how many can she buy? If she buys only oranges, how many can she buy? Write down the budget equation for the consumer. (Notice that knowing two points on the budget line, you can write down the budget equation, even though you weren't given the prices nor the income explicitly!) (c) Suppose MUx = 20 and MUY = 30 at some point on the budget line. Is she maximizing utility by choosing this bundle? If not, should she buy fewer apples (and more oranges), or more apples (and fewer oranges), to increase her utility? (d) Forget about (c); instead, you learn that her utility function is u(x,y) = Axy³. What is…
solve d,e,f please Thank you
Suppose you have a budget of $12 and cost of a cola is $2 and sandwich is $4. Using this information form the table, how many sandwiches and cola would you buy at the optimum?
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