In the given Figure, at $3,000 billion real CDP, Select one: a. inventories are constant. b. spending exceeds total output and inventories will fall. c aggregate demand equals aggregate supply. d. spending falls short of output and inventories will rise.
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- Refer to the below table. Which statement is true if aggregate income (output) is 1000? Aggregate Output 200 All Figures in Billions of Dollars Aggregate Consumption 300 Planned Investment 100 400 450 100 600 600 100 800 750 100 1,000 900 100 There is an unplanned increase in inventories and output will subsequently decrease. There is an unplanned increase in inventories and output will subsequently increase. There is an planned decrease in inventories and output will subsequently decrease. There is neither an unplanned decrease nor an increase. Output will remain the same. There is an planned increase in inventories and output will subsequently increase.Indicate whether each of the following affect consumption spending (C), investment spending (I), government spending (G), net export spending (NX), or none of the above (N). Enter only the letter given in parenthesis. Carmax sells a three year old car to John The government sends a social security payment to your grandfather John spends his social security check on a new computer Publix buys 4 new computers You pay your tuition to UCFWhich of the following correctly describes how a decrease in the price level affects consumption spending? Select one: a. A decrease in the price level raises real wealth, which causes consumption to increase. b. A decrease in the price level decreases the amount of money a household needs to buy goods and so raises the interest rate, which causes consumption to increase. c. A decrease in the price level increases the amount of money a household needs to buy goods and so raises the interest rate, which causes consumption to increase. d. A decrease in the price level lowers real wealth, which causes consumption to decrease.
- 3. If the current equilibrium GDP value is $925,000 and investment spending decreases by $25,000 with an MPC of 0.8, solve for the new equilibrium GDP.Consider a closed economy where total output (income) is $500,000. Households spend $300,000 on non-home goods and services, and the government collects $50,000 in taxes and spends $40,000, $10,000 of which goes toward a Welfare program. There is also some amount of business spending on inventories and productive assets. a. Calculate this economy's total savings. b. Calculate this economy's private savings.15. Total expenditures in a country (in billions of dollars) are increasing at a rate of f(x) = 8.22x+87.13, where x = 0 corresponds to the year 2000. Total expenditures were $1584.9 billion in 2002. a. Find a function that gives the total expenditures x years after 2000. b. What will total expenditures be in 2016? a. What is the function for the total expenditures? F(x)= (Simplify your answer. Use integers or decimals for any numbers in the expression.) b. In 2016, total expenditures will be S (Type an integer or a decimal.) billion.
- Suppose that disposable income, consumption, and saving in some country are $800 billion, $700 billion, and $100 billion, respectively. Next, assume that disposable income increases by $80 billion, consumption rises by $56 billion, and saving goes up by $24 billion. Instructions: In part a, round your answers to 2 decimal places. In part b, round your answers to 3 decimal places. a. What is the economy's MPC? MPC = What is its MPS? MPS = b. What was the APC before the increase in disposable income? АРС before%3D What was the APC after the increase? APC after =Other things remain unchanged, a country's Aggregate Demand is made up of $100 billion of consumption, $40 billion of investment, $10 billion of net exports, and $20 billion of government purchases. Full-employment GDP is $200 billion. To obtain full employment under these conditions, the government should: Select one: a.increasing corporate income taxes to discourage private domestic investment. b.reduce tax rates and/or increase government spending. c.increasing interest rate on government bonds to encourage personal saving.Real aggregate expenditure, AE (trillions of dollars) 0 Select one: 45° K Y = AE a. inventories will increase above their desired level. b. production is less than spending. c. the economy is in equilibrium. d. production is greater than spending. AE, Refer to Figure 12-1. If the economy is at a level of aggregate expenditure given by point K Real GDP, Y (trillions of dollars)
- d. What is the value of the multiplier? e. If planned investment spending falls to $200 billion, what will be the new Y*? f. If autonomous consumer spending rises to $200 bil- lion, what will be the new Y*?The table given below shows the values of different components of aggregate expenditure of an economy. At the equilibrium level of gross domestic product (GDP), saving equals Table 9.2 (Trillions of Dollars) Real Net Disposable Consumption Saving Planned Government Net Planned GDP Таxes Income (C) (S) Investment Purchases Exports Aggregate (Y) (NT) (Y – NT) (I) (G) (X – M) Expenditures C+I+G+(X-M) 5.0 1.0 4.0 3.9 0.1 1.0 1.0 -0.7 5.2 5.5 1.0 4.5 4.3 0.2 1.0 1.0 -0.7 5.6 6.0 1.0 5.0 4.7 0.3 1.0 1.0 -0.7 6.0 6.5 1.0 5.5 5.1 0.4 1.0 1.0 -0.7 6.4 7.0 1.0 6.0 5.5 0.5 1.0 1.0 -0.7 6.8 O a. $0.2 trillion O b. $0.1 trillion O c. $0.3 trillion O d. $0.4 trillion O e. $0.5 trillionBased on the following statistics, how much is consumption? Total spending | Investment Government spending $2.95 trillion Exports Imports S11.62 trillion $2.56 trillion S1.80 trillion $2.18 trillion $6.49 trillion -$0.38 trillion $11.62 trillion $5.13 trillion