An economy consumes 1 million chickens eachyear. A new technology in raising chickens lowersthe price of each chicken from $50 to $40.Suppose the economy still consumes 1 millionchickens each year at the lower price. Do youagreethat since the consumers pay $10 millionless, the national saving due to the change inprice equals $10 million?

The GDP that is saved instead of spent in an economy is referred the be as national saving. It is…

Answered: An economy consumes 1 million chickens…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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To answer Questions #1 through #4 use the following information: Suppose that in the nation state of Raleighville there are 2 final goods produced in the economy - dog food and kitten chow. Suppose the economy produces 15 units of dog food and 5 units of kitten chow in 2000 (the base year), and 20 units of dog food and 10 units of kitten chow in 2020. Further suppose the price of dog food was $1.00 per unit in 2000, and $3.00 per unit in 2020; whereas the price of kitten chow was $1.00 in 2000 and $2.50 in 2020. What was the real GDP for Raleighville in 2020? Oa. $20.00 O b. $30.00 Oc. $57.50 Od. $85.00 Next page page
An economy is based on three sectors, agriculture, manufacturing, and energy. Production of a dollar's worth of agriculture requires inputs of $0.30 from agriculture, $0.30 from manufacturing, and $0.30 from energy. Production of a dollar's worth of manufacturing requires inputs of $0.30 from agriculture, $0.30 from manufacturing, and $0.30 from energy. Production of a dollar's worth of energy requires inputs of $0.30 from agriculture, $0.40 from manufacturing, and $0.30 from energy. Find the output for each sector that is needed to satisfy a final demand of $30 billion for agriculture, $63 billion for manufacturing, and $20 billion for energy. The output of the agricultural sector is billion dollars. (Round the final answer to three decimal places as needed. Round all intermediate values to six decimal places as needed.)
The requirements of foreign trade and government (Y), total consumption (C) and total savings (S)). The total expenditure (AE) of all people in this country is equal to the total income (Y) at the end of the year. In the mentioned period, the rate or rate of change depending on income is used as 0.1. Find the country's income-related savings (S) function, compared to the year-end total expenditure (AE) 20000 and total consumption 19500 this year.

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