Answered: Given that C-200 +0.75 Y, investment-…

Given that C-200 +0.75 Y, investment- $150, government spending $200. The equilibrium output(Y) which is equal to GDP is: 1. 1000 2. 2000 3. 2200 4. 2500

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: If Government Spending (G) is $200 million, Tax Revenue (T) is $260 million, Consumption is $ 300…

A: GDP by the expenditure approach is the sum total of all the expenditures by all the sector in the…

Q: refer to the following table: Consumption expenditure (C)= 100+ 0.8 Yd Investment expenditure (1) =…

A: Answer: Given, C=100+0.8YdI=120-500iG=50 G rises by 100, Thus new G will be:G=150Taxes=0.1YMoney…

Q: If consumption equals $6,200 billion, investment equals $1,200 billion, transfer payments equal…

A: GDP is the value of final goods and services produced in the country within a given period of time.

Q: The Government of Bangladesh plans to administer 280 million doses of COVID-19 vaccine in the coming…

A: Answer-

Q: Suppose GDP is $12 trillion, taxes are $3.6 trillion, private saving is $1.5 trillion, and public…

A: GDP can be found out by the sum of these three components: Where, C is the consumption I is the…

Q: Level of investment goes up by 200. What happens with the level of GDP if you know that MPC = 0,8…

A: It is given that MPC=0.8 t=0.1

Q: If in an economy MPC is 0.8 and investment increase by $1000 billion. Calculate the increase in…

A: Given MPC = 0.8 Increase in investment = $1000 billion

Q: Assume that a three-sector economy in Country W. The amount of autonomous consumption is RM300…

A: T = tY = 0.2Y C = c0 + c1 x Yd = c0 + c1 x (Y - T) = 300 + 0.5 x (Y - 0.2Y) = 300 + 0.5 x 0.8Y = 300…

Q: abou TESE An economy is in equilibrium. Calculate marginal propensity to save from the following:…

Q: Country X has following data: C = 20 + 0.8Y4, I = 30, G = 40, T, = 20, T, = 15, X = 60, M = 20 +…

A: Here we calculate the following terms by using the given function and conclude the solution so the…

Q: An increase in net taxes will O increase the household consumption. O increase the saving. O…

A: Household consumption is positively related to disposable income. An increase in disposable income…

Q: ASSUME THAT A THREE SECTOR ECONOMY IN COUNTRY W. THE AMOUNT OF AUTONOMOUS CONSUMPTION IS RM 300…

A: Aggregate demand is given by the aggregate of consumption, investment, and government expenditure.

Q: 20 SU C O 30 100 12010 IGO 180 200 (SLIO) Supods VA

A: Given information:-

Q: U 1 2 point Suppose a country's MPC is 0.75. If the government increases taxes, causing disposable…

A: Marginal propensity to consume shows how consumption changes as income changes.

Q: What is the meaning of "animal spirits"? How do these relate to planned investment spending and to…

A: Animal spirits is a term used by Keynes to describe human behaviour. It is described as a…

Q: (M: 10,000 Government Spending (G): 1,500 Desired Consumption (C): 8,500 If the goods market is in…

A: here we calculate the desired level of investment in a closed economy by using the given information…

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: How do budget surpluses and budget deficits affect the consumption and investment components of GDP

A: The budget surplus is a situation where the revenue of government exceeds the spending of the…

Q: None

A: Show draftsvolume_upSolving for Equilibrium GDP in EconomikaWe can solve for equilibrium GDP in…

Q: 7.C = a + byd, where a refers to autonomous consumption. Autonomous consumption is a.saving when…

A: The question is asking to identify the correct definition of autonomous consumption in the context…

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…

Q: Suppose that in the country of Economia: Net Investment = $20 billion, Depreciation = $70b, Net…

A: GDP by Expenditure Method = Consumption + Gross Investments + Government Expenditure + Net Exports…

Q: a. By how much will GDP change if firms increase their investment by $9 billion and the MPC is 0.9?…

A: Marginal propensity to consume measures the change in consumption (C) due to a change in disposable…

Q: An economy is in equilibrium. Calculate national income from the following: Autonomous consumption =…

A: Investment expenditures are a critical consider the short run macroeconomic examination of business…

Q: 1- In a country, if the consumption is OMR 14000, exports OMR 5300, government purchases are…

A: GDP The final monetary worth of products and services generated within a country over a given period…

Q: Assume MPC is 0.9 and autonomous investment increases by $500 billion. What will be the impact on…

A: Marginal propensity to consume measures the magnitude of change in consumption expenditure due to…

Q: If the investment increases by 185 and the national income increases by 1200 billion what would be…

Q: Calculate the following Consumption = ? Suppose GDP is $8 trillion, taxes are $1.5 trillion, private…

A: Introduction: Consumption is the amount that can be calculated by subtracting the taxes, and private…

Q: consumption and investment: C = 1,000 + (2/3)*(Y – T) and I = 1,200 – 100*r. Furthermore, Y = 8,000,…

A: Given values:C = 1,000 + (2/3)*(Y – T)I = 1,200 – 100*rY=8000G=2500T=2000

Q: Fill in the missing values in the following table. Assume that the value of the MPC does not change…

A: Marginal Propensity to Consume measures the change in consumer spending resulting from a change in…

Q: Assume that a three-sector economy in Country W. The amount of autonomous consumption is RM300…

A: National income is the sum of expenditure incurred by various sectors of the economy in the form of…

Q: If consumption expenditures are $1800 million, gross investment is $450 million, imports are $350…

A: The output or the real GDP would be the sum of the consumption,investment, government expenditure,…

Q: If consumption expenditures are $1800 million, gross investment is $450 million, imports are $350…

A: here we calculate the GDP , budget deficit or surplus , private saving and disposable income by…

Q: If autonomous planned investment increases by $100, and the MPC = 0.8, in the first round of…

A: Given Change in autonomous investment ∆I=$100 MPC=0.8

Q: Real GDP (Y) $14,000 $15,000 $16,000 $17,000 $18,000 The equilibrium level of GDP is $ billion. The…

A: Marginal Propensity to Consume, or MPC, is a term used in economics to describe how consumer…

Q: Assume an economy where spending for each sector is: Household: C = 800 +0.95Qd Business: I=3000…

A: Hello, thank you for the question. Since there are many subparts in the question, only the first…

Q: If Government Spending (G) is 200 million, Tax Revenue (T) is $260 million \$2 Consumption is $300…

A: Given information: Government Spending (G) = 200 million, Tax Revenue (T) = $260 million Consumption…

Q: In a closed economy, the MPC is 0.50. Government spending changes by - 400. The change in…

A: Aggregate demand is the sum of Consumption, Investment , government spending , and net export =>…

Q: If real GDP is $1,500 billion, then the level of unplanned inventories is:

A: Unplanned inventory is the change in the level of inventory that is unexpected because of the actual…

Q: Assume that the Equilibrium GDP is $4,000 billion. The Potential GDP is $5,000 billion. The marginal…

A: In economics, the marginal propensity to consume is a metric that quantifies induced consumption,…

Question

Given that C-200 +0.75 Y, investment- $150, government spending= $200. The equilibrium output(Y) which is equal to GDP is:
1. 1000
2. 2000
3. 2200
4.
2500

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

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 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

Refer to Table 6.1. The share of personal consumption expenditures (C) in GDP is approximately: a. 55 %. b. 65 %. c 70% d. 75%.
Question 28 C+lg $500 000 0 400 300 200 100 45 $100 200 300 GDP 400 ·C+lg C 500 Refer to the diagram for a private closed economy. At the $300 level of GDP, aggregate expenditures and GDP are equal. consumption is $200 and planned investment is $50. saving exceeds planned investment. consumption plus saving is $400.
A number of economists contend that official measures of Canadian gross private investment expenditures are understated. For instance, household spending on education, such as college tuition expenditures, is counted as consumption. Some economists suggest that these expenditures, which amount to 6 percent of GDP, should be counted as investment instead. investment if this suggestion was adopted? Based on this 6 percent estimate and the estimated 2020 Q2 GDP being $1,820,369 million, how many millions of dollars would shift from consumption. Smillion would shift from consumption to investment if this suggestion was adopted. (Enter your response rounded to the nearest whole number.)
In a closed economy with no government, aggregate expenditure is saving plus investment. consumption plus investment. consumption plus the MPC. O MPC + MPS.
Assume that total expenditure E comprises the sum of government consumption, G, household consumption, C, and investment, I. Assume a closed macroeconomic system, so that income equals expenditure Y=E. If we define household saving, SH, as SH=Y-T-C, where Y is national income and T is total taxation, which of the following will be true? a. SH=I+G b. SH=I-G-T c. SH=I+(G-T) d. SH=I
The public consumption function of a country (a three-sector economy) is C = 60 + 0.6Yd. The government receives a tax of 40 from the people, but also provides transfer payments of 30 to its citizens. While government spending is 100, and investment realized is 50. Determine the balance national income.
Assume an open economy in which GDP is $20 trillion. If consumption is $14 trillion, government spending is $3 trillion, taxes are $2 trillion, government transfers are $0, exports are $2 trillion, and imports are $3 trillion, what is investment spending? a) $2 trillion b) $1 trillion c) $4 trillion d) $3 trillion
1. Consumption = 13,309 Exports = 2,316 Government purchases = 3,331 Saving = 6,607 Government budget deficit = 4,000 Imports = 2.883 %3D a. What is gross domestic product? GDP = b. What is investment? c. What is disposable income? Yd =. d. What is the level of government transfers minus taxes?
The table below provides income and consumption data in billions of dollars: Disposable Income Consumption Savings 100 80 --- 200 150 --- If the government increases spending by $5,000, then based on the data, GDP in this economy will increase by: A) $7,142.85 B) $22,000 C) $16,650 D) Cannot be answered
Refer to the diagram below and match the correct answer. Co l+ Xn+ G C + ,+ Xn 140 -C+g 120 100 80 45° 100 200 300 400 GDP ($B) A. $400. v If this economy was an open economy with a government sector, the level of GDP would be B. $300. v The size of the multiplier associated with changes in government spending in this economy is C. 3.50. D. $200. E. 5.00 E 2.00 9+"X+1 +°3
A country’s GDP is defined by the following equation: GDP = Consumer Spending + Investmentspending. The economy of this country is closed and there’s no government. Investment spendingis defined by the following equation: Investment Spending = Investment (planned) + Investment(unplanned). Investment (planned) is fixed at 350. Consumer spending is defined by thefollowing equation: Consumer spending = 200 + 0.55 (GDP). And for this country, PlannedExpenditure = Consumer Spending + Investment Planned. Based on this information, attempt thefollowing questions:a. “Investment (unplanned) will be negative if GDP is 900” – showing work, test theauthenticity of this statement. b. How do you think GDP (and production) will change if the income of this country is 1500?Explain by deriving Investment (unplanned) for an income of 1500. c. Derive the GDP for which Planned Expenditure = GDP. d. Supposed Investment (planned) was increased to 450. How will income-expenditureequilibrium change. e. Relate…
1.1. What is the US GDP for the first quarter and second quarter of 2020? What is the personal consumption expenditures for the first quarter and second quarter of 2020?