ADVANCED ANALYSIS Assume that the consumption schedule for a private open economy is such that consumption C= 60 +08Y Assume further that planned investment lo government spending G, and net exports X are independent of the levelof real GDP nd constant at lg 40, G= 0, and Xp= 10. Recall also that, in equilibrium, the real output produced () is equal toaggregate expenditures: Y= C+lg+ G+ XpInstructions: Round your answers to the nearest whole number.a. Calculate the equilibrium level of income or real GDP for this economyS 1050b. What happens to equilibrium Yif lg changes to 20?950What does this outcome reveal about the size of the multiplier?Multiplier=

Answered: ADVANCED ANALYSIS Assume that the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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If consumption is C=100+0.75Yd Taxes is T=50+0.5Y Export is X=200 Import is M=50+0.25Y Government spending is G=150 Investment is I=200 Usethemultiplierapplicabletoexport,toexplainhowa100–billiondeclineindemand forexportcouldaffecttheeconomy’s: (i) Balanceofpayment
A Moving to another question will save this response. estion 14 When C lg = GDP in a private closed economy, S= lg and there are no unplanned changes in inventories O A. true. O B, false. >A Moving to another question will save this response.
ADVANCED ANALYSIS Assume that the consumption schedule for a private open economy is such that consumption C= 100 + 0.9 Y. Assume further that planned investment /g, government spending G, and net exports Xn are independent of the level of real GDP and constant at lg= 60, G= 0, and Xn= 10. Recall also that, in equilibrium, the real output produced (Y) is equal to aggregate expenditures: Y= C+ lg+ G+ Xn. Instructions: Round your answers to the nearest whole number. a. Calculate the equilibrium level of income or real GDP for this economy. $ b. What happens to equilibrium Yif lg changes to 40? 2$ What does this outcome reveal about the size of the multiplier? Multiplier =
Refer to the following table National Consumption Investment Government Net income spending spending spending exports 260 260 280 270 225 25 10 5 25 10 5 300 280 25 10 320 290 25 10 LQ LQ 5 340 300 25 10 5 360 310 25 10 5 LQ LO What is the equilibrium Y? a. 260 b. 280 c. 300 d. 320 cross out cross out cross out cross out e. 340 cross out
Mc Graw Hill 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. Y 0 100 200 300 400 500 608 700 808 T 800 20 40 60 80 100 120 140 160 180 YD 60 -20 140 220 300 380 460 540 620 C 130 195 325 260 이 455 65 390 520 The Economy of Arkinia S +5 10 40 -20 100 25 55 70 85 Tools I 50 50 50 50 50 50 50 50 50 O Search G 180 180 180 180 180 180 180 180 180 < Prev kriste 10 of 10 X 50 50 50 50 58 50 50 50 50 i SAMSUNG IM 40 50 60 Next 10 20 30 70 80 90 200m Draw a 45° line (labelled Y) and the aggregate expenditure function, labelled AE₁. Identify expenditure equilibrium with the letter e Use the tool "e1" 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…
Aggregate Expenditures (Billions) 180 160- - 140 120 100 80 60 40+ 20 BCH 180 45 $20 40 60 QUESTION 15 Pearson VUE Navi... Pearson VUE - Da... 80 100 120 140 160 180 200 Real GDP (Billions) Refer to the diagram for a private closed economy. In this economy, aggregate expenditures Odo no change as GDP increases. increase by $2 for every $5 increase in GDP. increase by $2 for every $4 increase in GDP. increase by $2 for every $3 increase in GDP. Florida Insurance:... ( Un
determine the equilibrium level of real GDP and the MPC.
QUESTION 6 Potential GDP Aggregate expenditure AE, 45° Y. Real GDP (Y) When real GDP is greater than Yo in the diagram above: O A. - inventories will decrease OB. ·Aggregate expenditure will be less than Real GDP OC. Aggregate expenditure will be equal to Real GDP OD. O D. inventories will increase QUESTION 7 Y G Xn $1,000 $1,400 1,400 1,400 1,400 1,400 $0 $800 -$200 2,500 5,000 7,500 10,000 2,300 3,800 5,300 6,800 1,000 1,000 1,000 1,000 -200 -200 -200 -200 Suppose you are given the data in the table above for a hypothetical economy. All data are in billions of dollars. Yis actual real GDP, and C, Ip, G, and Xn are the consumption, planned investment, government purchases, and net exports components of aggregate expenditures, respectively. Calculate the equilibrium GDP (give your answer in billions of $) Aggregate Expenditure
Moving to another ques Quèstion 20 All figures in the table below are in billions. Assume that investment, Ia, is not affected by the income GDP level. GDP Consumption + Exports Imports Investment $ 500 $ 525 $ 15 $ 10 550 560 15 10 600 595 15 10 650 630 15 10 700 665 15 10 750 700 15 10 The multiplier for this private open economy is O A. 2.50. O B. 2.00. OC. 1.25. O D. 3.33. hp
ADVANCED ANALYSIS Assume that the consumption schedule for a private open economy is such that consumption is: C = 100 + 0.75Y Assume further that planned investment Ig and net exports Xn are independent of the level of real GDP and constant at Ig = 60 and Xn = 10. Recall also that, in equilibrium, the real output produced (Y) is equal to aggregate expenditures: Y = C + Ig + Xn Instructions: Round your answers to the nearest whole number.a. What is the equilibrium level of income or real GDP for this economy? Equilibrium GDP (Y) = $ . b. What happens to equilibrium Y if Ig changes to 40? Equilibrium GDP (Y) = $ . What does this outcome reveal about the size of the spending multiplier? Spending multiplier = .
QUESTION 14 Expenditures, Income Price level 60 50 40 30 20 10 80 70 60 50 40 30 20 10 0 0 0 10 Qe Qf0 40 50 LRAS 10 Qe20 Qf 30 O (d) All the above. O (e) Only (a) and (b) are true O (f) None of the above. AE1 AE* ΑΕo real GDP = Q ADO AS AD1 40 50 real GDP = Q 14. Which of he following statements accurately explain the scenario illustrated by these diagrams? O (a) Assuming ADo and AEo are the original positions of the AD and AE curves respectively, the original situation illustrated is a recessionary gap of 10. O (b) To restore full-employment equilibrium Aggregate Expenditures must be increased to AE1 which is equivalent to shifting the AD curve to AD1 O (c) Because the short-run Aggregate Supply (AS) curve is upward sloping, the shift in AD will be associated with some products price inflation. This will cause the AE curve to decline from AE1 to AE* because of the wealth, interest rate, and trade effects of inflation.

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