Instructions: Use the tool provided "AE" to show the complete aggregate expenditures schedule that includes the values for I, G, andNX. Then use the tool "New Equilibrium" to indicate the new equilibrium level of real GDP.ⓇAggregate Expenditures (dollars)28,00027,00026,00025,00024,00023,00022,00021,000Aggregate Expenditures Schedule20,00020,00021,00022,00023,00025,00024,00026,000AE = YDisposable Income (dollars)C27,00028,000Tools/AE--iNew Equilibrit The graph below shows the consumption schedule for Zamunda. Research has yielded the following information about Zamunda: Atthe current interest rate, gross investment (1) is $500, government purchases (G) are $800, exports are $400, and imports are $200.Instructions: In part a, enter your answer as a whole number. In part c, round your answers to one decimal place.a. By supplementing the consumption schedule in the graph below to include the expenditures for gross investment (1), governmentpurchases (G), and net exports (NX) stated above, what is the new value of the vertical intercept?b. In the graph below, create an aggregate expenditures schedule by including the expenditures for gross investment (I), governmentpurchases (G), and net exports (NX), and indicate the new equilibrium level of real GDP for the complete aggregate expendituresschedule.

Aggregate expenditure refers to the total amount of spending by households, businesses, government…

Instructions: Use the tool provided "AE" to show the complete aggregate expenditures schedule that includes the values for I, G, and NX. Then use the tool "New Equilibrium" to indicate the new equilibrium level of real GDP. Aggregate Expenditures (dollars) 28,000 27,000 26,000 25,000 24,000 23,000 22,000 21,000 Aggregate Expenditures Schedule 20,000 20,000 21,000 22,000 23,000 25,000 24,000 26,000 AE = Y Disposable Income (dollars) €7,000 C 28,000 Tools AE C New Equilibrit

Instructions: Use the tool provided "AE" to show the complete aggregate expenditures schedule that includes the values for I, G, and NX. Then use the tool "New Equilibrium" to indicate the new equilibrium level of real GDP. Aggregate Expenditures (dollars) 28,000 27,000 26,000 25,000 24,000 23,000 22,000 21,000 Aggregate Expenditures Schedule 20,000 20,000 21,000 22,000 23,000 25,000 24,000 26,000 AE = Y Disposable Income (dollars) €7,000 C 28,000 Tools AE C New Equilibrit

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

You are told that taxes in this economy are equal to 100. What is the value of autonomous consumption? Planned Government Net Exports Aggregate Change in Real GDP (Y) Consumption (C) Investment (1') Purchases (G) (NX) Expenditures (AE) Inventories 1500 1100 250 1600 1175 100 1700 1250 1800 1900 2000 75 Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a 50 75 100 d. 125
Please no written by hand solution 1. Explain the basic idea of the expenditure multiplier and also discuss the role consumer's play in determining its magnitude. (Minimum 150 words)
Typed plz please solve with high quality show all necessary steps and calculations take care of plagiarism also
Aggregate planned expenditure (trillions of 2009 dollars) 7 1 45° line AE2 AEO 2a) b) plan in th B A AE1 3a) 15 3 4 14 0 14 15 16 17 18 19 Real GDP (trillions of 2009 dollars) In the above figure the economy is initially at point A on the aggregate expenditure curve AEQ. Suppose investment decreases. As a result the AE curve shifts upward to a curve such as AE2. the AE curve shifts downward to a curve such as AE1. O there is a movement along AEO to a point such as B. O there is a movement along AEO to a point such as C. 5 6 7 81 90 100 109 b) T c) T d) It e) $1
Desired Aggregate Expenditure (AE) 1000 650 325 0 FIGURE 22-3 Actual National Income (Y) 45° C = 350 + (0.68)Y C = 325+ (0.65)Y C = 1000 + (0.80)Y AE I+G I Refer to Figure 22-3. Which of the following correctly describes the consumption function for this economy?
The question is based on the following information: 201 Item Total government revenue Total government expenditure Current government revenue Current government expenditure Non-interest expenditure Cyclically adjusted revenue Cyclically adjusted expenditure R million 510 533 490 520 1500 480 500 The conventional budget balance is R _million. If the balance is negative indicate it using the minus sign in your answer for instance-32
Aggregate Variables Value (in billions of dollars) in the base year Consumption spending $900 Investment spending $400 Government spending $200 Transfer payments $60 The marginal propensity to save is equal to 0.4 and there are no exports or imports, (a) Calculate the real GDP in this country, Show your work (b) Calculate the marginal propensity to consume Show your work. (c) Suppose that the government increases spending from $200 billion to $300 billion (i) Calculate the maximum change in real GDP. Show your work (ii) Given the change in real GDP in part (c)(i), calculate the maximum level of the new equilibrium real GDP. Show your work (d) Suppose that taxes decrease by $100 billion. Will the maximum change in real GDP be larger than, smaller than, or equal to the change in part (c)(i)? Explain.
(a) Suppose the price level in an economy rises while the money wage rate remains constant. What happens to the quantity of real GDP supplied. How will this affect the aggregate supply or aggregate demand curve? What if the potential GDP increases? Which aggregate curve is affected and how? (b) Real GDP Consumption Planned Investment Government Purchases Net Exports $1,000 $1,000 $100 $150 -$50 2,000 1,900 100 150 -50 3,000 2,800 100 150 -50 4,000 3,700 100 150 -50 From the table data provided, answer the following questions. The numbers in the table are in billions of dollars. Show all calculations. a. What is the equilibrium level of real GDP? b. What is the Marginal Propensity to Consume? c. What is the multiplier value in this economy? d. If potential GDP is $4,000 billion, is the economy at full employment? If not, what is the condition of the economy? e. If the economy is…
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
9
(a) Suppose the price level in an economy rises while the money wage rate remains constant. What happens to the quantity of real GDP supplied. How will this affect the aggregate supply or aggregate demand curve? What if the potential GDP increases? Which aggregate curve is affected and how? (b) Real GDP Consumption Planned Investment Government Purchases Net Exports $1,000 $1,000 $100 $150 -$50 2,000 1,900 100 150 -50 3,000 2,800 100 150 -50 4,000 3,700 100 150 -50 From the table data provided, answer the following questions. The numbers in the table are in billions of dollars. Show all calculations. a. What is the equilibrium level of real GDP? b. What is the Marginal Propensity to Consume? c. What is the multiplier value in this economy? d. If potential GDP is $4,000 billion, is the economy at full employment? If not, what is the condition of the economy? e. If the economy is not at full employment, by how much should government spending…
Given the scatter diagram in Figure 8-1, what is the MPC (your best estimate)? a. 1 b. 2/3 c. 1/2 d. 1/3 I know the answer of this question answer is 2/3 but can you please give the explanation how 2/3 is the answer of the problem