Change in business inventoriesCompensation of employeesCorporate profitsDurable goodsExportsSocial Security taxesTransfer paymentsFixed investmentGovernment spendingImportsNet interestNondurable goodsPersonal taxesRental incomeServicesIn Exhibit 5-10, compute personal income (PI). Which of the following is correct?O $7,110 billion.O $7,410 billion.$6,740 billion.$7,760 billion.$6.780 billion.505,4007006001003603009508001505002,0001,0002004,000

Personal Income (PI) represents the total income received by individuals prior to the deduction of…

Change in business inventories 50 Compensation of employees 5,400 Corporate profits 700 Durable goods 600 Exports Social Security taxes Transfer payments Fixed investment Government spending Imports Net interest Nondurable goods Personal taxes Rental income 100 360 300 950 800 150 500 2,000 1,000 200 Services 4,000 In Exhibit 5-10, compute personal income (PI). Which of the following is correct? O $7,110 billion. $7,410 billion. $6,740 billion. $7,760 billion. $6.780 billion.

Change in business inventories 50 Compensation of employees 5,400 Corporate profits 700 Durable goods 600 Exports Social Security taxes Transfer payments Fixed investment Government spending Imports Net interest Nondurable goods Personal taxes Rental income 100 360 300 950 800 150 500 2,000 1,000 200 Services 4,000 In Exhibit 5-10, compute personal income (PI). Which of the following is correct? O $7,110 billion. $7,410 billion. $6,740 billion. $7,760 billion. $6.780 billion.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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7 Real expenditure in thousands of dollars 6 5 3 2 0 1 Reference: Figure 10-5 O 0.25 O.0.50 2 O 0.75 Refer to the graph above. The mpe equals: O 1.00 3 4 5 6 7 Real income in thousands of dollars AE curve
Using the table1 below, calculate the marginal propensity (MPS) to save. Income Consumption (Dollars) (Dollars) 50,000 48,000 66,000 62,000 O a. 0.363 O b. 0.125 OC. 0.675 O d. 1.50
Which of the following changes in personal income tax would lead to the smallest increase in consumption? O a. O b. a $15 000 decrease in taxes, if MPC equals 0.6 O c. a $30 000 decrease in taxes, if MPC equals 0.25 Oe. a $20 000 decrease in taxes, if MPC equals 0.5 O d. a $12 000 decrease in taxes, if MPC equals 0.75 a $10 000 decrease in taxes, if MPC equals 0.2
Quèstion 5 $60 $40 -- $20 $50 100 150 200 Disposable Income(Y) -20 Refer to the diagram. The average propensity to consume: O A. is greater than 1 at all levels of disposable income above $100. O B. cannot be determined from the information given. O C, is equal to the average propensity to save. O D. is greater than 1 at all levels of disposable income below $100. Saving (S)
Disposable Income Consumption $0 $400 500 800 1,000 1,200 1,500 1,600 2,000 2,000 2,500 2,400 3,000 2,800 Refer to Exhibit 10-8. When disposable income equals $1,500, saving equals O a. -$100. O b. S1,600. O C $1,800. O d. S100.
(trillions of 2005 dollars) Aggregate planned expenditure 20 16 12 8 4 0 45° line AE 8 12 16 20 24 Real GDP (trillions of 2005 dollars) In the above figure, at the equilibrium, induced expenditure is O$12 trillion. O $8 trillion. O $4 trillion. O some amount not given in the above answers.
If real GDP is $2200 billion, the GDP deflator is 110, nominal net exports are $100 billion, nominal investment is $200 billion, and nominal government expenditures are $400 billion, what is nominal consumption? 1) $1300 2) $1500 3) $1520 O 4) $1720
(a) What is the current equilibrium level of national income? = (b) What is the level of injections 5+ 8 + 7= 206 (c) What is the level of withdrawals o 60+5+8+710-70 yoour TR:7bS-? (d) Assuming that tax revenues are 7 billion, how much is the level of savings? 13-50 040 (e) If national income now rises to 80 billion, and as a result, the consumption of domestically produced goods rises to 58 billion, what is the mpca (f) What is the value of multiplier? (g) Given the initial level of national income of 80 billion, now assume that spending on exports rises by 4 billion, spending on investment rises by 1 billion, and government expenditure falls by 2 billion. By how much the national income will change? 83 Q2, You find the following economic data for a closed economy Utopia: Marginal propensity to consume = 0.6, Investment = 30, Governement spending = 20 Government revenues =20 (Tax collection) People will consume a minimum of 10, no matter what their income is. 4=80 2. I=6 1. What is…
Intended Spending (billions) $2,300 $2,100 $1,900 $1,700 $1,500 The marginal propensity to consume is 01 O 19/21. O 2/3. O 5/7. 45% $1,500 $1,800 $2,100 $2,400 $2,700 Gross Domestic Product (billions) impossible to tell from the graph. Consumption plus investment Consumption
ASAP
Suppose disposable income increases from $7 trillion to $8 trillion. At the same time, consumption expenditure increases from $6.8 trillion to MPC must equal Thus the O $7.8 trillion; 0.60 O $7.6 trillion; 0.80 O $7.4 trillion; 0.40 O $8 trillion; 1.00
The Canadian economy produces a vast array of goods and services, from cars to cannabis Suppose that the hypothetical data for Canada has the folowing national income account data in billions of dollars: govermment purchases (SLOSO personal consumption expenditures (S4800 impors ($370 exports (524OE gross inventment (SL3O) Personal consumption expenditures are approximately what percentage of this economy? Mutple Choic O 70 percent O 60 percant O s percere 75 percent