Consumption expenditure:Investment expenditure:Government budget balanceMoney demandC = 100 +0.8 YaI= 120 – 500iDeficit of 50200 2000 i + 0.1Y Money supply:Lump-sum taxes:Current accountT=150= 0MDM= 100%3DWhere i is the interest rate, Y is the real GDP; Ya is the disposable incomeWhat is the equilibrium Y?Select one:O a. 1285cross cO b. 675crossO c. 700crossO d. 1000croscrosO e.None of the above

The government financial system that analyses the health of an economy, expected growth, economic…

Consumption expenditure: Investment expenditure: Government budget balance Money demand C = 100 +0.8 Ya I= 120 – 5001 Lump-sum taxes: T=150 Current account: = 0 Deficit of 50 MD 200 2000 i + 0.1Y Money supply M=100 Where i is the interest rate, Y is the real GDP; Ya is the disposable income What is the equilibrium Y? Select one: O a. 1285 O b. 675 с. 700 O d. 1000 O e. None of the above

Consumption expenditure: Investment expenditure: Government budget balance Money demand C = 100 +0.8 Ya I= 120 – 5001 Lump-sum taxes: T=150 Current account: = 0 Deficit of 50 MD 200 2000 i + 0.1Y Money supply M=100 Where i is the interest rate, Y is the real GDP; Ya is the disposable income What is the equilibrium Y? Select one: O a. 1285 O b. 675 с. 700 O d. 1000 O e. None of the above

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: 2. Consider an economy where aggregate demand AD consists of aggregate con- 1000 and government =…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: Consider the following information describing an economy with demand-determined output. There is no…

A: Given: The equilibrium condition for national income is Y=C+I.The marginal propensity to save, or…

Q: Capital consumption allowance 440 Federal government purchases of goods and services Compensation of…

A: The expenditure approach is a method for calculating a nation's gross domestic product (GDP) by…

Q: Which statement about this graph is NOT accurate? We are assuming a closed economy with government.…

Q: Figure: Aggregate Expenditures Curve II Aggregate expenditures (per year) $800 Reference: Ref 11-16…

A: Aggregate expenditure refers to the total spending within an economy over a specific period,…

Q: If the long-run aggregate supply curve is vertical, the a change in net taxes on aggregate output in…

A: The long-run aggregate supply curve represents the output level an economy can achieve when all its…

Q: The following national accounting data are available for an economy for 2020. $ Billion GDP 950…

A: The income which would result in the national income as a result the savings would result in the…

Q: Suppose Amal calculates her permanent income by adaptive expectations . Year 2020 Amal's permanent…

A: Adaptive expectations, an economic concept, entails individuals shaping their outlook on future…

Q: Select one: O a. 200 O b. None of the answers are correct O c. 400 O d. 300 O e. 500

A: Aggregate Demand Equation:Output/GDP=Consumption+Investment+Government Expenditure+Net…

Q: You observe a closed economy that has a government deficit and positive investment. Which of the…

A: In order to answer this question, we will use the concepts of public saving, private saving and…

Q: 14. If consumption function is given by : C= 100 + 0.8Yd , then MPS equal О a. 0.8 O b. 8 O .2 O d.…

A: Consumption is the spending or expense which is incurred for the purpose of utility by the consumer…

Question

100%

Consumption expenditure:
Investment expenditure:
Government budget balance
Money demand
C = 100 +0.8 Ya
I= 120 – 500i
Deficit of 50
200 2000 i + 0.1Y Money supply:
Lump-sum taxes:
Current account
T=150
= 0
MD
M= 100
%3D
Where i is the interest rate, Y is the real GDP; Ya is the disposable income
What is the equilibrium Y?
Select one:
O a. 1285
cross c
O b. 675
cross
O c. 700
cross
O d. 1000
cros
cros
O e.
None of the above

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

In a macro model where the marginal propensity to consume out of disposable income is 0.80, the net tax rate is 0.25, and the marginal propensity to import is 0.11, the simple multiplier will be O A. 3.448 O B. 2.041 OC. 0.490 O D. 1.961 O E. 1.408
GDP $0 1 2 Consumption $0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 D 8 4.5 As shown in Exhibit 9-1, if equilibrium GDP is $5 trillion, then the total of investment, government spending, and net exports is: 8 4.5 As shown in Exhibit 9-1, if equilibrium GDP is $5 trillion, then the total of investme O $1 trillion. $2 trillion. O $3 trillion. O $4 trillion. $6 trillion. 4 Aggregate Expenditures 6 Unplanned inventory
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
The crowding-out effect is the tendency for a government budget deficit to raise the and investment. O A. price level; increase O B. real interest rate; decrease O C. quantity of output; increase O D. real wage rate; decrease Click to select your answer. 888 :二。 F7 F6
Please answer fast please help
ADVANCED ANALYSIS Assume that the consumption schedule for a private open economy is such that consumption C= 60 + 08Y Assume further that planned investment lo government spending G, and net exports X are independent of the level of real GDP nd constant at lg 40, G= 0, and Xp= 10. Recall also that, in equilibrium, the real output produced () is equal to aggregate expenditures: Y= C+lg+ G+ Xp Instructions: Round your answers to the nearest whole number. a. Calculate the equilibrium level of income or real GDP for this economy S 1050 b. What happens to equilibrium Yif lg changes to 20? 950 What does this outcome reveal about the size of the multiplier? Multiplier=
QUESTION 16 If the marginal propensity to save is 0.1, the marginal propensity to import is 0.1 and the marginal tax rate is 0.2, how much would consumption increase if income rises by £8billion? O a. 4.8 O b. 13.3 O c. 3.2 O d. 20 4
9
Suppose Ausland's spending for the year can be described by the table below: Construction of New Housing $50 Private Consumption $650 Government Spending on Public $400 Private Acquisition of Capital Goods $160 Goods and Services Exports $100 GST Revenue $20 Imports $80 Marginal Propensity to Consume 0.6 Marginal Tax Rate 0.25 Marginal Propensity to Import 0.05 What is the value of Ausland's Investment (1) expenditure? Select one: O a. $50 O b. $350 O c. $160 O d. $210
A Moving to another question will save this response. Question 22 All figures in the table below are in billions. Assume that investment, , is not affected by the income GDP level. GDP Consumption + Exports Imports Investment $ 500 $ 525 $ 15 $ 10 550 560 15 10 600 595 15 10 650 630 15 10 700 665 15 10 750 700 15 10 The multiplier for this private open economy is O A. 2.00. O B. 3.33. O C. 2.50. O D. 1.25. A Moving to another question will save this response.
What is the initial change in consumption if an economy's MPC is 0.75 and there is a decrease in taxes of $1 billion? O $1.75 billion O $1 billion O $1.33 billion O $0.75 billion
In the Keynesian AE model, if the autonomous components of consumption, investment, government spending, and net export spending total $100 billion, and the MPC is 0.75, what will unplanned changes in inventory be when output is $345 billion? O-$4 billion O $4 billion O $5 billion O -$5 billion When output is higher than the intersection of the Keynesian AE and the 45- degree line, which of the following can we expect to happen? Osavings to be negative and consumption to fall O inventories to rise and output to fall O inventories to fall and output to rise consumers to expect higher incomes and consumption to rise