Problem 14-12 (algo) The following set of equations describe an economy: C = 16,000 + 0.5(YT) - 50,000r IP = 7,000 - 24,000r G = 8,200 NX = 1,800 T = 8,500 Y* = 48,620 a. Find a numerical equation relating planned aggregate expenditure to output and to the real interest rate. PAE= 33000 * 74000 + 0.50 Y b. At what value should the Fed set the real interest rate to eliminate any output gap? (Hint. Set output Yequal to the value of potential output given above in the equation you found in part a. Then solve for the real interest rate that also sets planned aggregate expenditure equal to potential output.) Instructions: Enter your response as a whole number. Real rate of interest: 6 %

This problem has been solved! See the answer Explain the relationship between the aggregate expenditures model in graph (A) below and the aggregate demand–aggregate supply model in graph (B) below. In other words, explain how points 1, 2, and 3 are related to points 1’, 2’, and 3’.

. This question repeats the exercise of Study Exercise 12, but for spe- cific numerical values. The equations of the model are C = 50 +0.7YD T = (0.2)Y I = 75 X = 50 G = 100 IM = (0.15)Y i a. Compute the AE function and plot it in a diagram. What is to- tal autonomous expenditure? b. What is the slope of the AE function? c. Compute the equilibrium level of national income. d. Suppose X rises from 50 to 100. How does this affect the level of national income? e. What is the simple multiplier in this model?

1. Complete the accompanying table with disposable income (DI) and consumption (C) schedules for a private, closed economy. All figures are in billions of dollars. DI Consumption Saving АРС APS MPC MPS 8. 40 40 80 72 120 104 160 136 200 168 240 200 (a) Refer to the above data. If plotted on a graph, the slope of the consumption schedule would be: (b) The break-even level of income is ($ ) where saving equals ( $ :). Households dissave ( $ ). Dissaving occurs at the lowest levels of income as households spend ( more, less ) than they receive in disposable income. This dissaving could occur with households liquidating (selling for cash) their assets or borrowing money. As income rises we see that savings ( increases, decreases ) by a greater and greater amount. (c) If consumption increases by $10 billion at each level of disposable income, the average propensity to consume (APC) will ( change, unchange) and/but the marginal propensity to consume (MPC)will ( change, not change). (d) (APC,…

For an economy the following functions have been given:C = 100 + 0.8YS = -100 + 0.2YI = 120 – 5rMs = 120Md = 0.2Y – 5rCalculate the following:5.1.1. IS equation 5.1.2. LM equation 5.1.3. Equilibrium level of income 5.1.4. Equilibrium level of interest rate. 5.1.5 Calculate National saving. 5.1.6 Calculate money demand 5.1.7 Find consumption

(1)The following macroeconomic model describes the economy of Sunderland. 1. Y= C +I + G + NX 2. C = 220 + 0.63 Y 3. 1 = 1000- 2000R 4. G = Go 5. NX = 525-0.10Y-50OR 6. M (0.1583Y-1000R)P (a)ls it a fair characterization to refer to equation #2 as a "simple" consumption function? Explain. (b)Derive the expression for equilibrium real output, Y, for this economy. Note: In your final expression for Y, restrict coefficient values to three decimal points. (c) Suppose government spending is 1200 , money supply by the Central Bank is 900 and the price level is 1, find the value of GDP (Y) and equilibrium interest rate (R) for Sunderland. Income Identity Consumption function Investment function Government Expenditure Net export function Money market equilibrium (2)The questions in this section are related to the macroeconomic model of Sunderland. (a)The expression you are asked to derive in question #1b can be considered an aggregate demand curve. Do you agree? Explain your answer. (b)Sketch…

C:/Users/iM/Desktop/S-slaiöl-üläubi- A A قراءة بصوت عال AACSB: Analytic Skills Refer to the information provided in Figure 9.3 below to answer the questions that follow. AE-C+1+G 500 300 45 500 Aggregate output, Y (billions of dollars) Figure 9.3 billion. 25) Refer to Figure 9.3. At equilibrium, autonomous planned expenditures equal $_ D) 300 A) 200 B) 100 C) 500 Answer: D Diff: 2 Topic: Fiscal Policy at Work: Multiplier Effects Skill: Analytic AACSB: Analytic Skills 26) Refer to Figure 9.3. The expenditure multiplier is A) 4. B) 5. C) 2.5. D) 2. Answer: C Diff: 2 Topic: Fiscal Policy at Work: Multiplier Efects Skill: Analytic AACSB: Analytic Skills 27) Refer to Figure 9.3. If autonomous planned expenditure increases by $20 billion, equilibrium aggregate output A) decreases; 360 to S billion. B) increases; 550 C) increases; 600 D) increases; 640 Answer: B Diff ? Planned ag (Saop jo suogng

(4. From 2009 to 2014, Eastlandia experienced large fluc- tuations in both aggregate consumer spending and disposable income, but wealth, the interest rate, and expected future disposable income did not change. The accompanying table shows the level of aggregate con- sumer spending and disposable income in millions of dollars for each of these years. Use this information to answer the following questions. Disposable income (millions of dollars) Consumer spending (millions of dollars) Year 2009 $100 $180 2010 350 380 2011 300 340 2012 400 420 2013 375 400 2014 500 500 a. Plot the aggregate consumption function for Eastlandia. b. What is the marginal propensity to consume? What is the marginal propensity to save? c. What is the aggregate consumption function?

Solve subparts 5.1.1 , 5.1.2, and 5.1.3 early I upvote

Q-1 The following table shows income and consumption: Calculate: A- Saving (S), B- Marginal propensity to consume (MPC),   C- Marginal propensity to save (MPS), D- Average propensity to consume (APC) E- Average propensity to save (APS).                                                                                                                                                                                                                       Y             C1000    15002000    26003600    30004800    39005500    42006200    4800