Question 2Refer to the data in Table 1, the consumption function is C = 200+ 0.8 (Y-T). Fill in thecolumns in the table columns and identify the equilibrium output. How do firms react tounplanned inventory?Table 1Income NetDisposableIncomeYTaxesConsumption SavingCGovernmentPurchasesGPlannedAggregateExpenditureC+I+GUnplannedInventoryChangeY-(C+I+G)S=Yd-CTYd=Y-T05020085050200170050200255050200340050200425050200¨¨¨PlannedInvestmentSpending,I150150150150150150

"Macro-economic equilibrium output is attained at a point where income equates the planned aggregate…

Question 2 Refer to the data in Table 1, the consumption function is C = 200+ 0.8 (Y-T). Fill in the columns in the table columns and identify the equilibrium output. How do firms react to unplanned inventory? Table 1 Income Net Disposable Income Unplanned Inventory Consumption Saving Y Taxes Government Purchases G Planned Aggregate Expenditure C+I+G S=Yd-C Change T Yd=Y-T Y-(C+I+G) 0 50 200 850 50 200 1700 50 200 2550 50 200 200 3400 50 4250 50 Planned Investment Spending, I 150 150 150 150 150 150 200

Question 2 Refer to the data in Table 1, the consumption function is C = 200+ 0.8 (Y-T). Fill in the columns in the table columns and identify the equilibrium output. How do firms react to unplanned inventory? Table 1 Income Net Disposable Income Unplanned Inventory Consumption Saving Y Taxes Government Purchases G Planned Aggregate Expenditure C+I+G S=Yd-C Change T Yd=Y-T Y-(C+I+G) 0 50 200 850 50 200 1700 50 200 2550 50 200 200 3400 50 4250 50 Planned Investment Spending, I 150 150 150 150 150 150 200

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

16. Find consumption expenditure from the following National Income =Rs. 5000 Autonomous Consumption = Rs. 1000 Marginal Propensity to Consume = 0.8 %3D
4. Planned expenditure and income The following table shows consumption (C), investment spending (I), and government purchases (G), in a hypothetical economy for various levels of income. Also assume that there is an income tax rate of 25%, that base consumption is $100 billion, and that the MPC is 0.333, or 1/3. This economy is closed, with no international trade, therefore net exports are equal to zero and should not be considered. Use the given information to fill in disposable income, consumption, and planned expenditures in the following table. Income: Real Disposable (After Tax) Planned GDP Income C I, G Expenditures (Billions of (Billions of dollars) (Billions of (Billions of (Billions of (Billions of dollars) dollars) dollars) dollars) dollars) 100 50 150 100 50 150 200 50 150 300 50 150 400 50 150 500 50 150
Table 1 - Income and consumption data Disposable Income ($billion) Total Consumption ($billion) Savings ($billion) 100 90 ____ 200 150 ____ In Table, what is the saving with disposable income $200? Please show equation. Answers: A. 40 B. 150 C. 0.40 D. 50
(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
Consider the following economy. What is the mpc in this economy? Planned Government Net Exports Aggregate Change in Real GDP (Y) Consumption (C) Investment (I') Purchases (G) (NX) Expenditures (AE) Inventories 10000 8200 800 11000 9000 600 12000 9800 13000 14000 15000 800 Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a 0.50 b 0.75 C 0.80 d 0.90
b) calculate gross private domestic investment $_______________ trillion (round to one decimal point) c) based on the information given, calculate personal income $____________ trillion (round to one decimal point) calculate personal disposable income $______________trillion (rounded to one decimal point)