Consider the macroeconomic model shown below: C = 500+ 0.80Y | = 1,500 G = 1,000 NX = - 100 Y=C+I+G+ NX Consumption function Planned investment function Government spending function Net export function Equilibrium condition Fill in the following table. (Enter your responses as integers.) Aggregate Expenditures (AE) $ $ GDP $11,600 $17,400 Unplanned Change in Inventories
Q: 30. What consumer's budget constraint reflect? O the Trade-off between two goods O the relative…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: 3. (a) Given the total cost function C = 2Q³ − 3Q² + 400Q + 5000 Calculate the average variable…
A: Given Total cost function: C=2Q3-3Q2+400Q+5000 ....(1) The formula for average variable…
Q: A machine currently under consideration by Marcus Industries has a cost of $31, 000. When the…
A: Given The price of the old machine was $25000 Inflation rate =5% per year Machine cost increases by…
Q: The price elasticity of demand for keyboards is 2.3. If the percentage change in quantity demanded…
A:
Q: What is a good or service that has become expensive/cheap due to (a) natural scarcity/abundance of…
A: Resource scarcity occurs when demand for a resource exceeds supply. What matters is that our way of…
Q: You are the Minister of Trade for a small island country with the following annual PPC: Coconuts Per…
A: A country has the comparative advantage in the good which they can produce at a lower opportunity…
Q: Suppose an economy has reached its steady state. If agents decide to save and invest a larger…
A: Steady state equilibrium in solow model is sy = (n+d)k s= saving rate y = output per labour = Y/L n…
Q: The premium of health insurance consists of these two factors: 1.Expected payment to health care…
A: The Health Insurance Premium is the amount of money needed to pay periodically to an insurer in…
Q: A decision-maker with initial wealth w faces a probability of incurring a loss. If the loss occurs,…
A: An investor who favors lower profits with known risks over larger returns with unknown risks is said…
Q: 1.1. What is a game in normal form? What is a strictly dominated strategy in a normal-form game?…
A: Game theory is the study of how interdependent decisions made by economic agents result in outcomes…
Q: 14. Compute for the effective annual interest rate if nominal rate is 7% compounded continuously.…
A: Given that, Nominal interest rate (i) = 7% or 0.07 compounded continuously.
Q: Use the figure below to answer the following question. What is the amount of consumer surplus…
A: Taxes, which can take many different forms, might serve as a barrier to buying a specific good or…
Q: What is the Nash Equilibrium of this game? Firm Develop Don't Develop Protect Don't Develop, Protect…
A:
Q: 4) Let C(Q) denote the cost of producing Q units of a commodity per month. What is the…
A:
Q: A consumer has utility u(x₁, x2) = x1 + x1x2. Suppose that, because of a shortage of good 1, the…
A: Utility function : u(x1 , x2 ) = x1 + x1x2 Price of good 1 : P1 , Price of good 2 : P2 Income =…
Q: Relative to productivity growth in the United States, which of the following countries experienced…
A: Productivity growth can be defined as a rise in the value of outputs produced for a given input…
Q: Consider a region with two export products (gloves and socks) and two local goods (tattoos and…
A: The act of selling goods and services produced in one nation to consumers in another country is…
Q: Show in a diagram the effect on the demand curve, the supply curve, the equilibrium price, and the…
A: Market demand for a commodity can change as a result of a change in consumers income, their tastes…
Q: How has olive oil impacted the economy?
A: Economy An economy is a region where products and services are produced, distributed, traded, and…
Q: Consider the Solow growth model with aggregate production function F(K, L) = ĀK¹/² L¹/2. Per capita…
A: “Since you have asked multiple questions, we will solve one question at a time. So we will solve…
Q: You enjoy consuming apples (A) and oranges (O). Suppose that your by Your marginal utility function…
A: The consumer will reach at equilibrium when the slope of a budget line is equal to the slope of an…
Q: S Suppose that the price of President's Choice macaroni and cheese decreased from $10 to $9 per…
A: Cross price elasticity of demand measures the responsiveness of quantity demanded of good 1 with…
Q: Suppose Walmart has announced plans to seek approval from the planning commission of a small town to…
A: Planning: It refers to the process under which the firms make a blueprint of all the things that…
Q: DER for USA of Commodities Wheat Bushel & Cloth Yards is 12W = 8C DER for UK of Commodities Wheat…
A: Comparative advantage refers to the ability to produce goods and services at a lower opportunity…
Q: is four The price of Salternative, a salt substitute, falls and we find that the substitution effect…
A: Given The price of Salternative falls so the substitution effect is 4 and the income effect is 5…
Q: Why is the existing firm experience will get normal profit in the long run?
A: Only in competitive market frameworks do freedom of entry and exit exist. As both market…
Q: In a Poisson distribution, μ = .36. (Round your answers to 4 decimal places.) (a)What is the…
A:
Q: QUESTION 6 A price ceiling below the equilibrium price will O Create a surplus. Not affect the…
A: A price ceiling is an upper limit on the price. It is a type of price control.
Q: You are the Minister of Trade for a small island country with the following annual PPC: 500 3 5…
A: Comparative advantage is an economy's capacity to create a specific good or service at a lower…
Q: Kevin's utility function is given by U=3x+2y. Kevin's demand functions for X and Y graphically…
A: Substitute goods are used for each other. When price of one good increases, the consumer tends to…
Q: Carefully explain what is happening in the market. Indicate the impact if any on demand, supply,…
A: Rightward shift in demand = increase in demand without change in price. Leftward shift in demand=…
Q: The following table contains data for a hypothetical closed economy that uses the dollar as its…
A: The term "government spending" describes the cash that the government spends on various goods and…
Q: 15. What is the GDP Deflator for Year 2? a. 105 b. 135 c. 136 d. 142 e. 143
A: GDP deflator is a measure of price level of all goods and services produced in an economy. GDP…
Q: In the first problem set, you solved the consumer problem for the utility function u(z1, 72) =…
A:
Q: The compound interest on a certain sum of money at 25% for 3 years is Php 47,656.25. Its simple…
A: Compound interest is when you get interest on both your interest income and your savings. Let's…
Q: What distinguishes a public good from a private good? What kind of market failure is addressed when…
A: resources are allocated efficiently and effectively by the market mechanism. But sometime when…
Q: QUESTION 7 Two products are complements if a decrease in the price of one causes an increase in…
A: Find true or false.
Q: The following is a table showing Erica's marginal benefit from purchasing bottles of soda and…
A: Dear student, you have asked multiple sub-part questions in a single post.In such a case, as per the…
Q: Suppose that the feasible region of a cost minimization linear programming problem has three corners…
A: The objective function is given as: Z = 2X + Y Corner points given are (5,8) (10,5) (4,10) So, the…
Q: If your desired rate of return is 12% compounded quarterly and you plan to keep the bond until…
A: Given The face value of the bond is $1000 The coupon rate is 6% with quarterly payment The bond…
Q: Home prices in a particular neighborhood average $350k with a standard deviation of $30k. They are…
A:
Q: Refer to the Reserve Bank news release below. Use the AD/AS model to answer how each of the economic…
A: Official Cash Rate (OCR) is defined as the interest rate that is set by New Zealand's Monetary…
Q: What is the term "investment" define? Explain in a economic sense.
A: A purchase made with the intention of creating income or capital growth is known as an investment.…
Q: At a certain interest rate compound quarterly, P 1,000 will amount to P 4,500 in 15 years. What is…
A: Given that, Amount invested = 1000 APR = r Quarterly rate = r/4 Number of period = 15 × 4 = 60…
Q: Ted can wax car in 15 minutes or wash a car in 45 minutes. Ishana can wax a car in 30 minutes or…
A: Opportunity cost refers to the loss of next best alternative while making a decision.
Q: After graduating from college in 2010, Art Major's starting salary is $30757.00. Suppose Art Major…
A: Answer; (1) Salary in 2011 = Salary in 2010 * ( CPI in 2011 / CPI in 2010) = 30757*(106.02 / 102.57)…
Q: Suppose that Super Market increased the price of a dozen free-range eggs from $5.50 to $6.50. As a…
A: Disclaimer- “Since you have asked multiple question, we will solve the first three question for you…
Q: Figure Chase Rive Concert Tickets Price $25.00 20.00 15.00 10.00 0 200 Refer to Figure: Chase Rice…
A: Shortage :- This Is the condition when demand is greater than supply. Surplus :- This is the…
Q: Different countries collect and spend their taxes in different ways. Theses differences: a…
A: A fundamental method for nations to produce public revenues that enable them to support investments…
Q: Fares makes 150 a day as a supervisor. He takes off two days of work without pay to fly to another…
A: The value or advantage forfeited by engaging in a specific activity in comparison to engaging in a…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Assume that a nation's marginal propensity to consume (MPC) is 0.75. A highiy productive, cost-cutting technology is developed for the production of commercial airplanes. The total industry expenditure in this nation is $100 million for the immediate acquisition and adoption of this technology. (a) For this nation, identify and explain how much this spending on new technology will change each of the following in the first round: i. Income (GDP) L. Saving i. Consumption (b) Assuming a closed economy and no leakages, identify and explain how much this spending on new technology will change each of the following at the end of the final round: i. Income (GDP) ii. Saving li. ConsumptionAssume 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?Given the following model of an Economy as follows:- (10 marks) C = 50 + 0.7 Yd (Yd = Y-T) (Consumption & Expend) I = 100 (Investment Expend) X = 20 (Exports ) M = 10 – 0.27 (Imports) T=25 interepret the consumption Function i) Determine Equilibrium level of National Income ii) Consumption level at Equilibrium level of Income iii) Total import at equilibrium Income
- Consider the economy of Hicksonia.a. C=300+0.50(Y-T)The investment function is I=100-20tGovernment purchases and taxes are both 150.For this economy, use a graph to illustratethe IS curve for r ranging from 0 to 8. (4marks)The accompanying graph represents the aggregate consumption function for the small island nation of Pineapple Paradise. The people of Pineapple Paradise expect their future 10,000 disposable income to increase. Use the graph to show an 9,000 increase in consumption expenditures. 8,000 7,000 What is the new level of aggregate autonomous consumer ,000 Aggregate Consumption Function spending? ,000 $2000 4,000 $4000 3,000 $1000 O $3000 2,000 1,000 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 Disposable Income Çonsumer Spending,The aggregate demand function: yad =C+1+G₁ = 500+ 0.75Y is plotted on the graph to the right. The graph also shows the 45° line where aggregate output Y equals aggregate demand yad for all points. What happens to aggregate output if government spending rises by 100? The equilibrium level of output rises by $ billion. (Round your response to the nearest billion.) Consumption Expenditure, C ($ billions) 3000- 2800- 2600- 2400- 2200- 2000- 1800- 1600- 1400- 1200- 1000- 800- 600- 400- 200- 0- 0 yad =C+I+G₁ = 500 +0.75Y Y = yad 45° 400 800 1200 1600 2000 2400 2800 Disposable Income ($ billions)
- 25 1 Calculate the equilibrium level of investment if you have the following equations: C=0.4Yd+20, national income is 1000, government expenditures is 200, tax is 50 Investment =300 O Investment-D350 O Investment3D400 O Investment3D450 O None of the above OUse the table below to answer the following questions. Real Consumptio GDP n $300 310 320 330 340 350 360 $290 298 306 314 322 330 338 (a) What is the size of the multiplier in this economy? Now, calculate the multiplier when the MPS is .5, .25, .10. What is the relationship between MPS and the multiplier? (b) If taxes were zero, government purchases were $10, investments $6, and net exports were zero, what is the equilibrium GDP? (c) If taxes are $5, government purchases are $10, investment is $6, and net exports are zero, what is the equilibrium GDP? (d) Assume that investment, net exports, and taxes are zero. Government purchases are $30, and the full-employment GDP without inflation is $330. How much must government spending be reduced to eliminate the inflationary expenditure gap?Consider the following economy. What is the mpc in this economy? Planned Government Net Exports Aggregate Change in Real GDP (Y) Consumption (C) Investment (I') Purchases (G) (NX) Expenditures (AE) Inventories 10000 8200 800 11000 9000 600 12000 9800 13000 14000 15000 800 Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a 0.50 b 0.75 C 0.80 d 0.90
- DI (1) $0 10 с 20 30 401 50 DI (2) с DI (3) $4 $0 $65 11 80 125 18 160 185 25 240 245 32 320 305 80 74 39 400 365 100 92 (Advanced analysis) Refer to the given consumption schedules. DI signifies disposable income and C represents consumption expenditures. All figures are in billions of dollars. When plotted on a graph, the vertical intercept of the consumption schedule in economy (3) is ______and the slope is O $2; 0.18 O minus $2; 0.9 O $100; 0.5 O $2; 0.9 C $0 20 40 60 $2 20 38 56What is the marginal propensity to consume in this economy? Planned Government Net Exports Aggregate Change in Real GDP (Y) Consumption (C) Investment (1') Purchases (G) (NX) Expenditures (AE) Inventories 1500 1100 250 1600 1175 100 1700 1250 1800 1900 2000 75 Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a 0.65 0.75 0.85 d. 0.95What is the expenditure multiplier in this economy? Planned Government Net Exports Aggregate Change in Real GDP (Y) Consumption (C) Investment (ı') Purchases (G) (NX) Expenditures (AE) Inventories 10000 8200 800 11000 9000 600 12000 9800 13000 14000 15000 800 Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a 3 4 C d 10