Answered: Calculate business investment for the…

Calculate business investment for the following data: Y = 55,000 C = 40,000 G= 5,000 NX= - 2000 A.) Investment is $9,800 B.) Investment is 12,000 C.) Investment is 3600 D.) Investment is 1,200

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose in a simple economy the following is produced. Note that all cheese produced is used in the production of cheeseburgers and the base year is year 1. Product Quantity (Year 1) Price (Year 1) Quantity (Year 2) Price (Year 2) Cars 50 20 100 30 Homes 10 50 20 160 Cheeseburgers Cheese 100 5 50 1 150 75 6 Dragged and dropped options on the right-hand side will be automatically saved. For keyboard navigation... SHOW MORE What is the nominal GDP in year 1 of this simple economy? What is the real GDP in year 2 of this simple economy? In year 3 the GDP deflator is 145. What is the inflation rate between year 2 and year 3? In year 3 the Real GDP is 4000. What is the rate in real GDP between year 2 and year 3? = 12.68% = 3625 = 6.67% =u 6.62% III =U 2000 III 1950 3750
Advanced analysis) Assume the following consumption schedule: C = 20 + 0.9Y, where C is consumption and Y is disposable income. At a(n) $1,200 level of disposable income, the level of saving is
10 10 00 8 B Investment Demand Interest Rate (%) 2 4 6 AS D Price Level AD₁ (I=120) AD₂ (I=90) AD3 (1=60) 0 $30 60 90 120 150 Investment ($) 0 Real GDP ($) Refer to the graphs above, in which the numbers in parentheses near the AD1, AD2, and AD3 labels indicate the level of investment spending associated with each curve, respectively. All numbers are in billions of dollars. The interest rate and the level of investment spending in the economy are at point D on the investment demand curve. To achieve the long-run goal of a noninflationary full-employment output Qf in the economy, the Fed should try to: Select one: a. Decrease aggregate demand by increasing the interest rate from 2 to 4 percent ○ b. Decrease aggregate demand by increasing the interest rate from 4 to 6 percent C. Increase aggregate demand by decreasing the interest rate from 4 to 2 percent d. Increase the level of investment spending from $120 billion to $150 billion
Hide Assignment Information Instructions The table below is broken down by Month, Real Interest Rate (%), Loanable Funds (trillions of $), Exogenous Change, Equilibria (increases, decreases, or no change. Use the data table to determine the equilibrium real interest rate after certain factors change: Month Real Interest Rate (%) Loanable Funds (trillions of $) Exogenous Change Equilibria (increases, decreases, or no change) January 3% 3 no change no change April 3% 4 increased fund supply ? July 4% 2 decreased fund supply ? December 3% 3 increased fund demand ?
This case study focuses on the Australian economy in 2019, before the COVID-19 pandemic hit. On 4th September 2019, the Australian Bureau of Statistics (ABS) published Real GDP data for the quarter ending June 2019. (The reporting of GDP always lags by about 2 months as it takes time to collect and compile data). The data showed that the Australian economy recorded quarterly growth of 0.5%. However, there was a decrease in Real GDP per capita. Furthermore, Real GDP per capita in June 2019 was lower than it was a year before (June 2018). Overall, while Real GDP still increased, the growth was very weak; the weakest on record since March 2001. (Source: Australian Financial Review and The Guardian). Required: Question 1. Clearly explain what Real GDP per capita means.Clearly explain why Real GDP per capita decreased whereas there was still growth in Real GDP for the quarter ending June 2019. Question 2. Given the economic conditions described above, predict how the following key…
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14. Calculate Equilibrium GDP (Y*) in each of the following situations (IP is Autonomous Planned Investment): (a) C 50+.75(Y-10), IP = 100, G=20, NX = -15. (b) a = 10, MP C = .8, T10, TR= 5, IP=50, G = 40, NX = 0. (c) a = 15, MP C .85, T = 15, TR= 10, IP= 55, G=45, NX = 5. (d) The MPC is 0.75, Autonomous Consumption is 100, Autonomous Planned Investment is 80, Government Spending is 50, Net Exports are -20, Lump-sum Taxes are 50, and Transfer Payments are 20.
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(a) Assume that Gross Domestic Product (GDP)/Total output (Y) is 6,000. Consumption (C) is given by the equation C = 600 + 0.6(Y – T) where T is the tax. Investment (I) is given by the equation I = 2,000 – 100r, where r is the real rate of interest, in percent. Taxes (T) are 500, and government spending (G) is also 500. What are the equilibrium values of C, I, and r?
Suppose you are given the following data for a particular economy (unit: Millions of Euros):Gross National Income mp (GNImp) =1650Investment (I) = 220(Iliq) Net investment = 210Private consumption(C) =1100Net External Income (NEI) = 0Net Indirect Taxes (NIT) = 231Public Spending (G) = 363 Calculate: a) Balance of Goods and Services or Net Exports (NX) and Amortizations/Depreciations (A). b) Net National Product at Base Prices (NNPbp) and Net Domestic Product at Base Prices (NDPbp)