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if investment is $0.5 trillion, government spending is $1 trillion, and next exports are -$0.5 trillion, the equilibrium
Gross domestic product (GDP): - GDP is the market value of all final goods and services produced in any country in a given period of time.
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- Which of the following will not cause an increase in equilibrium GDP? a) an increase in government expenditure on health care b) an increase in income tax rates c) an increase in exports to the EU d) an increase in domestic consumption expenditureGiven the following: consumption = 400, investment = 100, government expenditure = 50 and net export = 20, what is the economy’s equilibrium GDP?Calculate the equilibrium level of income in the economy, if C = 500+ 0.9Y. and investment expenditure is 3000.
- Suppose that exports increase by $300 billion, given an MPC of.75. Calculate the change in GDP. Give your answer in billions and leave off the dollar sign. Be sure to include a negative sign if appropriate.Suppose that autonomous consumplion is 50, government purchases are 125, planned investment spending is 175, net exports are - 50, and the MPC is 0.9. Equilibrium GDP is $ (Round your response to the nearost dollar.)What is the effect on aggregate expenditure if the values of exports exceeds the value of imports in a country
- a) Calculate the national income equilibrium. b) Based on your answer in (a), show the aggregate expenditure graph. c) Explain what would happen to the national income equilibrium if the investment changes by RM100 million.Calculate the value of consumption expenditure from the following:- National income = $6000 Autonomous consumption = $1000 Marginal propensity to consume = 0.80Answer the question on the basis of the following table for a particular country in which C is consumption expenditures, Ig is gross investment expenditures, G is government expenditures, X is exports, and M is imports. All figures are in billions of dollars. Each question is independent of other question using the same table, unless otherwise stated. Price Level C Ig G X M Real GDP 128 $18 $2 $3 $1 $5 125 $20 $4 $3 $2 $4 122 $22 $6 $3 $3 $3 119 $24 $8 $3 $4 $2 116 $26 $10 $3 $5 $1 Refer to the table. The real-balances effect of changes in the price level is: Group of answer choices shown by columns (1) and (5) of the table. shown by columns (1) and (4) of the table. not shown by the data in the table. shown by columns (1) and (2) of the table.
- A $300 million decrease in investment spending will increase real GDP by more than $300 million. Is this a true statement? What is the relationship between investment spending and the GDP? I think that investment spending goes directly into the economy so I believe the answer to be true. But I am not sure.Assume an economy has a consumption function of C = 0.87 (Yd) + $270.18. Additionally, this economy has investment spending = $878.78, government purchases $299.38, taxes = $111.59, exports = $209.28, and imports $289.40. What is the equilibrium level of GDP based on this information? Round your answer to two digits after the decimal. =In the third quarter of 2008, investment in the U.S. totaled $4,2 trillion and in 2007, investment was $1,4 trillion. In addition, third quarter of 2007 real GDP was $48 trillion. Suppose the MPC in the U.S. is 0.80. Ignoring all other changes in spending, what is the new real GDP?
