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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4) Listen Consumption per period (billions of dollars) 券 $1,600 1,400 Consumption 1,200 శ్రీఎనాలడ్ =శ 1,000 800 400 200 $400 800 1,200 1,600 2,000 2,400 Disposable personal income per period (billions of dollars) Reference: Ref 11(26)-3 Figure: Consumption and Disposable Personal Income (Figure: Consumption and Disposable Personal Income) Use Figure: Consumption and Disposable Personal Income. When disposable personal income is $2,000 billion, consumption is billion.
Question 5/ 25 If government spending decreased by $500. Given that c= 100+0.75y and the initial income is S5000, the new equilibrium income is: 1. O$7000 2. Os1600 3. O$3000 4. Os6600
1) At an output level of $400 billion, there is an unplanned inventory change of All Numbers are in $ Billion Net Taxes 100 100 100 Output Consumption (Income) Spending 200 100 400 600 800 1,000 300 400 500 600 A) positive $100 billion. B) negative $100 billion. C) negative $200 billion. D) zero. 100 100 Investment Government Spending Spending 200 100 200 100 200 100 200 200 100 100
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.
Table 7-3 (in $ billion) consumption $1,100.00 %3D inventory investment = $460.00 purchased of new capital goods = $560.00 government purchases = $300.00 %3D exports = $20.00 %3D imports $33.00 %D purchased of new residential housing = $58.00 %3D Refer to Table 7-3, GDP equals O $2,165.00 O $2,432.00 O $2,465.00 O $2,425.00
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Using the data in the table, gross domestic product equals O A. $2,150. B. $1,920. O C. $2,400. O D. $1,940. Corporate profits Net interest Indirect taxes less subsidies Depreciation Compensation of employees Proprietor's income Rental income Personal consumption expenditures Government expenditure on goods and services Net exports of goods and services $200 150 230 250 1,350 150 70 1,400 500 40
5. Expenditure Gaps The following graph shows the planned expenditure line (AE) for an economy where current equilibrium income is $400 billion and full-employment income is $650 billion. REAL EXPENDITURE (Billions of dollars) 800 700 600 500 400 300 200 100 0 0 100 45-degree line The economy is experiencing the income gap would require a $ this economy is PE Full-Employment Income 200 300 400 500 600 700 800 INCOME (Billions of dollars) billion PE ? billion. Closing in government spending. Thus the value of the multiplier for with the absolute value of the gap equal to