Q1 - Refer to the information provided inFigure below to answer the question(s) thatfollow.Aggregate consumption (C)2702001306045°100200300Aggregate income (Y)1. The equation for the aggregate consumptionfunction2 The equation for the aggregate savingfunction3- In this economy, aggregate saving will bezero if income is4- If aggregate income is $1,000 billion, in thissociety aggregateconsumption isQ2 Explain how the inflation situation in theeconomy can be addressed through the use ofmonetary policy

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Answered: Q1 - Refer to the information provided…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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2
Refer to the figure below: CHANGE FROM PRIOR QUARTER (percent) +16 +12 +8 +4 Consumption ° -4 -8 יוון וון -12 -16 Investment -20 -24 Investment is more volatile than consumption. 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 2000 2001 2002 2003 2004 2005 CALENDAR QUARTER 2006 2007 2008 What was the range, in absolute value of percentage change, of the variation in quarterly growth rates between 2005 and 2008 of Instructions: Enter your responses as a percent rounded to the nearest whole number. (a) Consumer spending? 1 percent to 4 percent 3 percent to 7 percent 5 percent to 9 percent (b) Investment spending? 1 percent to 22 percent 3 percent to 30 percent 5 percent to 37 percent
1
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QNO: 3 Consider an economy discribed by the followng Equations Y= C +1+ G. C= 250 + .75(Y-T) | = 1000-50r. a) In this economy Computé private saving, public saving and national saving b)Find equilibrium rate of interest c)Now Suppose that G rises to 1,250 Compute private, and National saving. d) find the new equilibrium. Y= 5000 G=1000 |=1000 7:42 pm
At an aggregate output level of $400 billion what is aggregate savings?
44. An increase in the general price level in the economy a) Will increase the purchasing power of consumers' wealth and decrease consumption spending. b) Will increase demand for, and decrease supply of loanable funds, causing the interest rate to increase which in turn will cause investment spending to fall. c) Makes domestic goods more expensive than foreign goods than before which will tend to decrease exports and increase imports, thus lowering net exports. d) All the above e) Only (b) and (c) are true
Solve in 30 min
Question 2 On 20 April 2021, the Government of Bangladesh announced an additional BDT 105 million allocation as relief for people affected by the lockdown in the country. This brings the total government disbursement of COVID-19 related payments to low-income families to around BDT 9.3 billion. Most of these allocations have been made directly into the accounts of the low-income families via money-transfer apps such as bKash, Nagad, etc. Keep in mind that while the lockdown is in effect, many people cannot work. This means that output of the economy is at a low level. a. Using a diagram, explain what effect these transfers will have on the loanable funds market. b. Do you expect the effect of these transfers on the loanable funds market to be large or small? Explain. c. Explain the effect of the lockdown on price-level and output of the economy.
25
Question 7 The country of Kingsland is considering the introduction of a compulsory retirement saving scheme. Under this scheme all workers are required to save ten per cent of their annual wages and salaries until they retire. Use the supply and demand model (and a diagram) for saving and investment to explain the likely effects of this scheme on national saving, investment and the real interest rate in New Holland. Explain the effects on employment of the saving scheme. (You can assume that New Holland is a closed economy).
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