In a closed economy, if Y is 12,000, T is 1,000, G is 3,000, and C is 5,000, then the government has a budget deficit and investment is 3000 the government has a budget surplus and investment is 1,000 the government has a budget surplus and investment is 2,000 O the government has a budget deficit and investment is 4,000

In a closed economy, if Y is 12,000, T is 1,000, G is 3,000, and C is 5,000, then the government has a budget deficit and investment is 3000 the government has a budget surplus and investment is 1,000 the government has a budget surplus and investment is 2,000 O the government has a budget deficit and investment is 4,000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Instructions: Enter your answers as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. (2) Aggregate Expenditures, Output (GDP = DI), Private Closed Economy, Billions (6) Aggregate Expenditures, Open Economy,. (5) Net Exports, (1) Real Domestic (3) Еxports, (4) Imports, Billions Billions Billions Billions Billions $300 $340 $30 $10 350 380 30 10 400 420 30 10 450 460 30 10 500 500 30 10 550 540 30 10 600 580 30 10 650 620 30 10 Net exports = $ billion Equilibrium GDP = $ billion d. What is the multiplier in this example?
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?
Suppose the GDP of a country with a closed economy is $22 trillion, (net) taxes are $4.2 trillion, public saving is $0.8 trillion, and private saving is $1.3 trillion. What are the values of consumption, investment, national saving, and government spending? 1b Is the government of this country running a budget surplus or a deficit?
Consider country A, which is a closed economy. Suppose that A’s private saving is 280 and investment is 250. What is the public saving? Consider country B, which is a closed economy. B’s private saving is 500, its government spending is 100, budget deficit is 50, consumption is 1000. what is the B’s investment and the disposable income, Y – T (Y is the total income, T is tax revenue)?
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Suppose that the government allocates $1 billion for new roads. It also raises taxes by $1 billion to keep the deficit from growing. The absolute value of the government purchase multiplier is 3.33 and that of the tax multiplier is 2.33. What is the effect on equilibrium GDP? GDP does not change. ● GDP increases by $ 2.33 billion. GDP increases by $3.33 billion ⒸGDP increases by $1 billion.
Consider the following data for a closed economy: Y = $11 trillion C = $10 trillion G = $2 trillion Spublic = $-0.5 trillion T = $1 trillion Use these data to calculate the following: a. private saving, b. investment spending, c. transfer payments and d. the government budget balance. a. Private saving is: $ trillion. (Round your responses to one decimal place.) b. Investment spending is: $ trillion. (Round your responses to one decimal place.) c. Transfer payments are: $ trillion. (Round your responses to one decimal place.) d. The government budget balance is: $ trillion and as a result the government budget is in (Round your responses to one decimal place.)
Problems 3. Draw the graph and label correctly Assume a simple closed economy, with an mpc equal to 0.75. The government has passed a balanced budget amendment. The economy goes into a recession, so the government increases government spending by 40 million to try to expand the economy. a. Calculate the change in output (AY) from the increase in government spending (AG). b. The balanced budget amendment requires the government to also raise taxes by 40 million. Calculate change in output (AY) from the tax hike.
Use the following table to answer the next question. All figures in the table are in billions. C + I $525 560 RGDP $500 550 600 650 700 750 $600 billion. $700 billion. $650 billion. 595 630 665 700 $550 billion. Exports $15 15 15 5555 The equilibrium level of real GDP in this private open economy is Multiple Choice 15 15 15 Imports $10 10 10 10 10 10
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