National Income 100 200 300 400 500 600 O 104 324 374 This is a table for Keynesian cross diagram. 540 After-tax income Consumption 104 I+G+X below gives the data necessary to make a Keynesian cross diagram. Assume that the tax rate is 0.4 of national income, the MPC out of after-tax income is 0.9, investment is 58, government spending is 60, exports are 40, and imports are 0.1 of after-tax income. What does consumption equal when income equals 600? Minus Imports Aggregate Expenditures The chart

National Income 100 200 300 400 500 600 O 104 324 374 This is a table for Keynesian cross diagram. 540 After-tax income Consumption 104 I+G+X below gives the data necessary to make a Keynesian cross diagram. Assume that the tax rate is 0.4 of national income, the MPC out of after-tax income is 0.9, investment is 58, government spending is 60, exports are 40, and imports are 0.1 of after-tax income. What does consumption equal when income equals 600? Minus Imports Aggregate Expenditures The chart

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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14- According to the Figure 12, what could be the reason of Increasing in the slope of IS curve and shifts from IS to iS R Figure 12 R1 IS IS Y a) O A decrease in export b) O A decrease in autonomous expenditures An increase in autonomous expenditures d) O A decrease in tax rate e) An increase in tax rate Leave blank
Assume an MPC of 0.9. The change in total spending for the economy as a result of a $100 billion new government spending injection would be: A) $90 billion B) $80 billion C) $900 billion D) $800 billion
The Simple Keynesian Model (i.e., the income-expenditure model). Assume: C = 150 + 0.9 DI I = 50 DI = C + I in equilibrium for a 2-sector model (Note: DI = C in a 1-sector model) Define the term, consumption. What is the value of “autonomous” consumption (also called “a” or the vertical intercept)? What is the value of the slope (also referred to as “b”) of the consumption function? There’s another name for the slope of the consumption function. What is it? What is the value of DI when the model is in equilibrium? What is the value of the “oversimplified” expenditure multiplier? If full-employment means that DI = $5000, then how much should autonomous consumption (or autonomous investment) increase to achieve full-employment? (Hint: Use the multiplier process formula.) Draw a graph of this 2-sector model. Indicate equilibrium DI, full-employment DI, as well as…
Answer it by using chain rule. Note: Do not approximate e^-1000.
Consider a Keynesian model of the economy with the following equations; C = 300 + 0.7Yd = 500 TR ァミ250 = 300 = 400 X 150 M = 0,2Y The equilibrium level of income is O €1,500 €2,720 €2,650 O €1,325
The chart below gives the data necessary to make a Keynesian cross diagram. Assume that the tax rate is 0.4 of national income, the MPC out of after-tax income is 0.9, investment is 58, government spending is 60, exports are 40, and imports are 0.1 of after-tax income. Alt Text: This chart contains the following columns: National Income, After-tax income, Consumption, I+G+X, Minus Imports, and Aggregate Expenditures. The National Income Column contains the following values for each of the following rows: 100, 200, 300, 400, 500, and 600. The only other value provided is the consumption, 104, for national income, 100. What does consumption equal when income equals 600? Group of answer choices a. 324 b. 374 c. 540 d. 104
YAS = 742 + 15 P- 28Poil YAD = 478 - 45P + 18G Suppose initially, the Poil = $93 per barrel and government spending is equal to $630. %3D Part (a): Calculate equilibrium GDP and the price level. Part (b): Determine the magnitude of the multiplier if oil prices exogenously rise by $1. Part (c): Using 2 to 3 sentences, provide a theoretical explanation for why the multiplier you calculated in part (b) is smaller (in absolute value) than the simple multiplier. Hint: you should be mentioning how the price level impacts AE and AD variables. Part (d): Determine the magnitude of the multiplier if government spending exogenously increases by $1. Part (e): Using 2 to 3 sentences, provide a theoretical explanation for why the multiplier you calculated in part (d) is smaller than the simple multiplier. Hint: you should be mentioning how the price level impacts AE and AD variables.
2. For simplicity, we normally treat aggregate tax payments (T) as determined by politics or other factors unrelated to output. However, suppose that aggregate tax payments are proportional to income. That is, T=t·Y, where tis the marginal tax rate and is between o and 1. a. How, if at all, would this change in our assumptions affect the Keynesian cross diagram? b. Would this change increase, decrease, or have no impact on the multiplier effect, or is it not possible to tell? (That is, how would the effect of a given vertical shift of the planned expenditure line compare with what it was before?)
Q39 which of the following is correct about the effects of tax Select one: a. Taxes affect the IS curve, as well as LM curve b. They reduce disposable income, so that there is less consumption at every level of Y c. An increase in the Tax is called a fiscal expansion d. An increase in taxes shifts the IS curve to the right
If the marginal propensity to consume (MPC) is .90 estimate the total (multiplied) effect of governement purchases/spending of $100B in the economy of its aggregate expenditure
. Find the equilibrium level of national income in the basic Keynesian macroeconomic model: Y=C+I+G C=20+0.75Yd Yd=(1-t)Y
It is said that, the national budget is an annual development plan for the state and it is more than ordinary financial statement. Covid-19 epidemic outbreak has had a devastating impact on most economies specially Ghana. It therefore requires expert knowledge and prudent economic decision making to recover the economy. As a special assistant to the Minister of Finance, indicate the macroeconomic targets you will consider appropriate to be factored into 2021 national budget? Demonstrate clearly in each case how the performance targets set could be achieved using appropriate economic policy measures.