Consider the following information about an economy. C=100+b(Y-50-0.25Y); I=50, G=50, X=10, M=5+0.1y, t=0.25Y, MPC=0.8 Find equilibrium national income Find the foreign trade multiplier What components are excluded in calculating national income and why? [
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Consider the following information about an economy.
C=100+b(Y-50-0.25Y);
I=50,
G=50,
X=10,
M=5+0.1y,
t=0.25Y,
MPC=0.8
Find equilibrium
Find the foreign trade multiplier
What components are excluded in calculating national income and why? [
What is the effect of an increase in t of 0.3 on the equilibrium income and the multiplier?
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- Assume that the economy is now governed by a government and begins trading with other economies. The economy is described by the following set of equations. ?=1000+0.5⋅?d ID = 600 G=700 T=400 EX=0.1⋅Y IM=100+0.1⋅Y YD = Y - T Calculate the equilibrium level of output Y* a) 2857 b) 4000 c) 6274 d) 4400 Whats the government expenditure multiplier? Whats the tax multiplier? Whats the ba;anced budget multiplier?If government spending as a percent of potential GDP had just risen from 18% to 20%, what does the spending allocation model predict would be happening in our economy to consumption, investment, and net exports? Sketch out the spending allocation diagram and show any changes that might have occurred.People sometimes argue that imports should be limited by government policy. Suppose a government quota on the quantity of imports causes net exports to rise. Using the circular flow diagram as a guide, explain why total expenditures and national output may rise after the quota in imposed. Who is likely to benefit from the quota? Who will be hurt?
- Using the domestic goods demand and net exports graphs, illustrate graphically and explain the effects of a decrease in taxes on output, exports, imports, and net exports. Label all the curves, the initial and new equilibrium points.This question doesn't provide any graph and other information. The question is: using the domestic goods demand and net exports graphs, illustrate graphically and explain the effects of a decrease in taxes on output, exports, imports, and net exports. Label all the curves, the initial and new equilibrium points. Please draw the graph tooCalculate the values for government purchases (G), private domestic saving (S), and private domestic investment (I) from the following information (all variables are in billions of dollars). 1. - . 5,200 YD = 4,400 C = 4,100 budget deficit trade surplus (NX) national income Y BD = 150 disposable income consumption TD = 110
- Discuss which of the following fall into the categories of consumption, investment, government expenditure and net exports from the Y = C + I + G + NX (X – M) identity, and whether the impact is to increase or decrease GDP. (a) Charles buys a second-hand textbook from Tim. (b) When Charles bought the book, he paid Sarah $10 to collect it from Tim. (c) Thomas buys a new house (d) Your firm sells meat to Indonesia (e) The fish and chips shop down the road buys fish to make meals for diners. (f) The same shop buys a deep fryer to fry fish for meals.What is the equilibrium level of income for this economy if Y = C + I + G + X - M ? a. 581.82 b. 581.76 c. 483.71 d. 483.53 What the size of the import multiplier for this economy? a. 3.03 b. 3.05 c. 3.07 d. 3.094) Calculate the values for government purchases (G), private domestic saving (S), and private domestic investment (I) from the following information (all variables are in billions of dollars). National income Y = 5,200 Disposable income Consumption Budget Deficit Net Exports YD = 4,400 C = 4,100 BD = 150 NX = 110
- The table below shows national income and imports. The level of exports is fixed at $350. All figures are in millions of dollars. Imports (IM) Net Exports (NX) 290 a 330 b 370 410 Income (Y) 1,800 3,300 4,800 6,300 On a graph of the net export function for this economy, at what level of Y would the NX function intersect the horizontal axis? A. at $0 B. at $4,050 C. at $4,800 D. at $1,800 E. at $6,300 с dAn economy with no government and no foreign trade tends to move toward equilibrium GDP because at output levels greater than equilibrium GDP, inventories are...c. Given the original $20 billion level of exports, what would be net exports and the equilibrium GDP if imports were $10 billion greater at each level of GDP? Fill in the gray-shaded cells. Instructions: Enter your answers as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers (1) Real Domestic Output (GDP-DI), Billions $250 300 350 400 450 500 550 600 (2) Aggregate Expenditures, Private Closed Economy, Billions $290 330 370 410 450 490 530 570 billion Net exports = $ Equilibrium GDP=$ d. What is the multiplier in this example? (3) Exports, Billions billion $20 2222222 20 20 20 20 20 20 20 (4) Imports, Billions $40 40 40 40 40 40 40 40 (5) Net Exports, Billions (6) Aggregate Expenditures, Open Economy, Billions