If the consumption function is C-800+0.6(Y-T), output, Y.= $2,100 and net taxes, T.-$100, then consumption=S For the data in the following table, the consumption function is C-800+0.6(Y-7) Fill in the columns in the table and identify the equilibrium output. The equilibrium output is s Output $2,100 2,600 3,100 3,000 4,100 4,600 5,100 Net Taxes $100 100 100 100 100 100 100 Disposable Consumption Income Spending $ Saving (Round your response to the nearest whole number) 300 300 300 300 300 Planned Investment Government Spending $300 300 Planned Aggregate Purchases Expenditure $400 400 400 400 400 400 400 Unplanned Inventory Change

If the consumption function is C-800+0.6(Y-T), output, Y.= $2,100 and net taxes, T.-$100, then consumption=S For the data in the following table, the consumption function is C-800+0.6(Y-7) Fill in the columns in the table and identify the equilibrium output. The equilibrium output is s Output $2,100 2,600 3,100 3,000 4,100 4,600 5,100 Net Taxes $100 100 100 100 100 100 100 Disposable Consumption Income Spending $ Saving (Round your response to the nearest whole number) 300 300 300 300 300 Planned Investment Government Spending $300 300 Planned Aggregate Purchases Expenditure $400 400 400 400 400 400 400 Unplanned Inventory Change

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

For the last time, consider the economy described above. You won't work directly with its numbers in this question, but I'm repeating them in case it's helpful: Government purchases $1000 Transfer payments $0 (none in this economy) Net taxes = $1500 Output (income) = $8000 Consumption = $3500 Let's say the MPC 0.8 and the government gives a tax cut of $50. As a result, private savings will [ Select ) . public savings will I Select V and this [ Select) Va good idea to stimulate economic investment.
Assume taxes are zero and an economy has a consumption function of C = 0.89 (Yd) + $299.19. How much consumption takes place if disposable income is equal to 4,848.76? Round your answer to two digits after the decimal.
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)
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.
What is the effect on savings of a tax cut of $15 billion? Is this inflationary or deflationary? Assume that the MPC is 0.9.
The main difference between variable taxes and fixed taxes is that unlike fixed taxes, variable taxes . The following graph shows the consumption schedule for an economy with a given level of taxes. Suppose the government implements a tax increase through a fixed tax. Use two green points (triangle symbol) to connect the two black points (plus symbols) representing the consumption schedule after the change in taxes. Hint: The new consumption schedule must pass through one point on the left and one point on the right. The blue line on the next graph represents the original total expenditure line for this economy before the change in tax structure. Use the new consumption line you just plotted to calculate the new total expenditure at two levels of real GDP and fill in the following table. GDP level Total Expenditure (Billions of dollars) (Billions of dollars) 10 90 Use the green points (triangle symbols) to draw the new total…
7. Question 3. The consumption function Consider the hypothetical country of Kejimkujik. Suppose that national income in Kejimkujik is $12 billion, households pay $4 billion in taxes, household consumption is equal to $6 billion, and the marginal propensity to consume (MPC) is 0.625. On the following graph, use the blue line (circle symbol) to plot the economy's consumption function. CONSUMPTION (Billions of dollars) 20 18 16 14 12 10 8 OF 6 4 2 0 6 8 10 12 14 16 DISPOSABLE INCOME (Billions of dollars). 18 20 Consumption Function
The following table provides some information on government spending (G) and tax revenues (T) at different levels of real GDP in a hypothetical economy. Note: Throughout this problem you can assume, for simplicity, that government transfers are zero. Real GDP (Billions of dollars) 460 GOVERNMENT SPENDING AND TAXES (Billions of dollars) 80 78 76 74 Use the blue line (circle symbols) to plot the government spending schedule presented in the table. Then use the orange line (square symbols) to plot the economy's tax revenues schedule. 72 70 68 → 68 64 62 + 60 500 540 400 420 Government Spending (G) (Billions of dollars) 72 440 72 72 460 480 500 520 540 REAL GDP (Billions of dollars) 560 Tax Revenues (T) (Billions of dollars) 70 580 72 74 600 404-8141 Deficits Surpluses ?
Aa30 Economics
Question 2 Refer to the information provided in Figure 23.9 below to answer the question(s) that follow. Aggregate expenditures ($ millions) 225 200 175 150 45° AE 100 200 300 Aggregate output ($ millions) Figure 23.9 a) Refer to Figure 23.9. Write the equation for the aggregate expenditure function (AE). Show your work. b) Refer to Figure 23.9. What is the equilibrium level of output in this economy? State the equilibrium condition used to determine this. c) Explain the forces that maintain/drive the economy to this equilibrium by considering what will happen at the following two levels of output, $300 million and $100 million. You will need to discuss changes in investment through unplanned inventories and the response of output. d) Refer to Figure 23.9. How will equilibrium aggregate expenditure and equilibrium aggregate output change as a result of a decrease in investment by $20 million? e)The interest rate is an exogenous factor that effects the level of investment in an economy.…
just b please. Mainly the "calculating the differences estimate between the free option and $3 option."
problems 2, 3, and 4 please