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- 1. Country X has following data: C = 20 + 0.8Y4, I = 30, G = 40, Tx = 20, T, = 15, X = 60, M = 20 + 0.04Y, incoming year growth target is 600, All figures is billion. Please calculate: a. National income equilibrium! b. Consumption and saving equilibrium! c. Government income from tax! d. How much change in government consumption if they want to achieve growth target?Ina hypothetical economy, real GDP is $35 trillion, the capital stock is $100trillon, household savings is $5 trillion business savings is $4 trillion the net capital outfow is $2 trillion, and the budget deficit is S$1 trillion. National savings in this economy is O $8 trillion $8.5 trillion $9 trillion $75 trillion SO00OCould you do C and D A country has an initial real output of $162 Billion. What would the final output be expected to be if:a. The government spends $15 billion on infrastructure and the MPC of the country is 0.35b. The government reduces taxes by $3.5 billion and the MPW of the country is 0.75c. The government makes no changes to taxes or spending.d. The government decreases spending nationwide by $9 billion in a country where people are likely to withdraw 60 cents on every new dollar of income.
- Which of the following policy actions wouldunambiguously reduce the supply of loanable fundsand crowd out investment?a. an increase in taxes and a decrease ingovernment spendingb. a decrease in taxes together with an increase ingovernment spendingc. an increase in both taxes and governmentspendingd. a decrease in both taxes and government spendingReductions in the personal income tax, often advocated by supply-siders to increase labor supply and effort, can be expected to also a. decrease consumption spending. b. increase export sales. c. increase consumption spending. d. decrease investment spending.1. What happens to the following variables during an expansion?a. unemployment compensationb. welfare paymentsc. income tax receiptsd. government budget deficits (surplus)
- Real Disp. Consmp. Income Spending Saving Invst Plnd Plnd Govt Net Plnd Exp. Export Exp. 10.8 GDP Tax 10 6.8 1.2 1.5 2 0.5 11 7.6 1.4 1.5 0.5 11.6 12 10 8.4 1.6 1.5 2 0.5 12.4 13 2 11 9.2 1.8 1.5 2 0.5 13.2 14 12 10.0 2.0 1.5 0.5 14.0 15 13 10.8 2.2 1.5 0.5 148 16 14 11.6 2.4 1.5 2 0.5 15.6 Note: Amounts in billions. Refer to the above table. The equilibrium real GDP is $15 billion. $14 billion. $13 billion. $12 billion.The macroeconomic effects of federal investment can decrease if : a.State and local governments tax investment spending towards other non-investment areas. b.State and local governments complement federal policy by also increasing investment. c.State and local governments keep local investment spending unchanged. d.State and local governments substitute investment spending towards other non-investment areas.The US and China are the two biggest economies of the world. Which of these situations will most likely increase the value of the US dollar as it trades with China? a. China's GDP increases faster than US O b. China imports more from the US than it exports to the US O c. China exports more to the US than it imports from the US O d. China's exports increases sharply
- What is the value of the sensitivity money demand to the level of income? O a. 25 O b. 0.50 O c. 50 O d. 0.65 What is the value of the nominal supply? O a. 500 O b. 1000 O c. 1000/2 O d. 2 Which of the following is an expression representing the IS curve O a. 0.65Y = 2325 - 50i O b. 0.65Y = 2325 + 50i O c. 0.50Y = 500 + 25i O d. 0.35Y = 2325 - 50iWhat is a fiscal policy tool used to stimulate economic growth during a recession? A. Increasing government spending B. Reducing taxes C. Selling government bonds D. Reducing government spending2. Which of the following is more likely to be effective in increasing the growth rate of real GDP? temporary cuts in income taxes permanent cuts in business taxes a one-time personal income tax rebate All cuts in taxes are equally likely to increase the growth rate of real GDP