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A: To solve the GDP we will assume average disposable income and consumption in real$
Q: The rise in consumption is by $590 and the rise in income is by $700 Calculate MPC
A: The information given is as follows:- Change in Consumption = $590 ( positive ) Change in income =…
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A: The objective of the question is to identify the appropriate method for calculating Gross Domestic…
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Q: Find the consumption expenditure National income = 7000 Autonomous consumption = 1300 MPC = 0.4
A: Generally in the given question, National income is valued as = 7000 Autonomous consumption is given…
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A: Marginal propensity to consume measures the change in consumption (C) due to a change in disposable…
Q: An increase of $250 million investment in an economy resulted in total increase in income of $1000…
A: The value of MPC can be calculated by using the below formula: K = 11 - MPCHere, K is the…
Q: If the consumption level is $84 and the saving is $44 find the value of the national income???
A:
Q: Classify each of the following items as a final good or service or an intermediate good or service,…
A: A. A textbook bought by a student is a final good that is consumption expenditure. Consumption goods…
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A: ANS In an economy, all the goods that are produced are sold. Also, it should be noted that whatever…
Q: Which of the following is an example of an investment expenditure? A Steve purchases a new power…
A: Investment Expenditure is the expenditure on purchase of capital goods by individual, firm and…
Q: Disposable income Consumption (dollars) expenditure (dollars) 0 100 300 500 700 900 In the above…
A: Savings, disposable income, and consumption are all interconnected concepts in economics. The…
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A: Part of investment expenditures.
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A: This can be defined as the concept that shows the total value of all products and services produced…
Q: Classify each of the following items as a final good or service or an intermediate good or service,…
A: The items that are being used for providing utility and satisfaction of human wants are known as…
Q: If an increase $ 1000 in investment in an economy results in an increase in income of $40000,…
A: The change in investment = $1000 The change in Income = $40000
Q: Calculate consumption expenditure given that:- APC = 0.16 Income = $5000
A: The data presented in the question above is:- Average propensity to consume = 0.16 Income = $5000…
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A: GDP of a nation: Gross Domestic Product or GDP signifies the sum of the values of all end…
Q: Year GDP Disposable Income Consumption Imports 2036 $1050 $840 $830 $111 What is the marginal…
A: The marginal propensity to import is the adjustment of imports prompted by an adjustment of…
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A: Goods market equilibrium is achieved at the point where the aggregate expenditure is equal to…
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A: Disposable income refers to income that is left after paying all personal taxes. Diposable income =…
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A: MPC, marginal propensity to consume is the proportion of change of income used on consumption when…
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A: Consumption means using resources for satisfying current needs and wants.
Q: The following table shows data for the economy before the decrease in saving. Suppose that the…
A: Total expenditure is the sum of consumption (C), investment (I), government purchases (G) and net…
Q: Average Propensity to Consume is:
A: Consumption expenditure is the purchase of goods and services by households for use during a period…
Q: If consumption expenditure is $3100 and savings is $1800 Calculate income
A: According to the above mentioned question, we have:- Consumption expenditure = $3100 Savings = $1800…
Q: If in an economy MPC is 0.8 and investment increase by $1000 million, calculate total increase in…
A: The marginal propensity to consume, MPC = 0.8 The increase in the investment = $1000
Q: What is the equilibrium in this economy? Planned Net Exports (NX) Government Change in Real GDP (Y)…
A: equilibrium income: When an economy or company has an equivalent amount of supply and consumer…
Q: Explain the relationship between output and income for both an individual and an entire economy.
A: To understand the relationship beween output and income for an individual and the whole economy, we…
Q: in an imaginary economy, there is no foreign trade and no government activity. APC = MPC = 0.08. In…
A: GDP refers to the total value of finished goods and services that produced within the economic…
Q: If MPC is 0.9 and increase in investment is of $ 100 billion. Find the increase in national income.
A: Given, MPC = 0.9 Increase in investment = $100 Increase in national income = ?
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- Given the scatter diagram in Figure 8-1, what is the MPC (your best estimate)? a. 1 b. 2/3 c. 1/2 d. 1/3 I know the answer of this question answer is 2/3 but can you please give the explanation how 2/3 is the answer of the problemNoneYear GDP Disposable Income Consumption Imports 2036 $1050 $840 $830 $111 What is the marginal propensity to import? 2037 $1000 $800 $800 $100 Round to two decimal places. If your answer is 0.064 (i.e., 6.4%) enter .06. If your answer is 0.065 (i.e., 6.5%) enter .07. Do not forget to enter the negative sign, if appropriate.
- Use the information in the table to answer the following questions. All numbers are in billions of 2012 dollars Planned Government Net Exports Real GDP (Y) Consumption (c) Investment (I) Purchases (G) (NX) $5,000 $4,500 $500 $700 - $500 S6,000 $5,300 $500 $700 - $500 S7,000 $6,100 S500 $700 - $500 $8,000 $6,900 $500 $700 - $500 S9,000 $7,700 S500 $700 - $500 The equilibrium level GDP is $ billion. The MPC is (enter your response to two decimal places). Suppose that net exports increase by $400 billion. Using the multiplier formula, determine the new level of GDP. A $400 billion increase in net exports leads to a change in spending of $ billion, so the new level of GDP will be $ billion.Consider the data presented in the table: Actual aggregate expenditure or output Consumption Planned (Y) (C) (billions (billions of $) of $) 500 300 600 350 700 400 800 450 900 500 Unplanned Government Net investment spending exports (inventory (NX) change) investment (G) (billions (billions (billions (billions of $) of $) of $) of $) 100 -100 -50 S ol C 150 150 C 150 S 150 C 150 C 100 100 C 100 C 100 C Based on the assumptions of the aggregate expenditure model, fill in the columns for planned investment, government spending, and net exports. Instructions: Enter the values into the table above. 50 50 € 50 C 50 S 50 S a. For each level of actual aggregate expenditure, calculate unplanned inventory investment. correct. Instructions: Enter the values into the table above. If the value is negative, then be sure to enter a minus sign. b. What is the equilibrium level of aggregate expenditure in this economy? Instructions: Enter a number rounded to the nearest whole number. Answer is…Help in less than 10 mins
- D71) Personal consumption expenditures in billions of dollars are A) 900. B) 1,100. C)1400 D) 1,600. 2) The value for gross private domestic investment in billions of dollars is A) 740. B) 810. C) 850. D)890The gross domestic product (GDP) of Country A is $2 trillion in year 1. What value of investment will increase its GDP to $4.5trillion in year 2? (present your result in the nearest billion dollars, i.e., no decimal places) Assume that the average disposable income and consumption (in real $) of this country's citizen are provided in the table below. Year Income Consumption 1 60,000 50,000 64,726 51,259