* Question Completion Status: Take Test: ECO 201-1800 Test 3 A Moving to the next question prevents changes to this answer. Question 6 Question 6 of 25 4 points Save Answer If the current level of real GDP equals $9,000 billion, and there are no changes in the consumption function or in planned investment, then real GDP will in the next period. Aggregate expenditures per year $15,000 13,500- 45-degree line (billions of dollars) 12,000 AE 10,500- 9,000 7,500 6,000 4,500 3,000 1,500 0 $3,000 6,000 9,000 12,000 15,000 Real GDP (Y) per year (billions of dollars) a, rise b. remain unchanged c. fall, but only if there is an offsetting change in autonomous consumption d. fall A Moving to the next question prevents changes to this answer. Question 6 of 25

* Question Completion Status: Take Test: ECO 201-1800 Test 3 A Moving to the next question prevents changes to this answer. Question 6 Question 6 of 25 4 points Save Answer If the current level of real GDP equals $9,000 billion, and there are no changes in the consumption function or in planned investment, then real GDP will in the next period. Aggregate expenditures per year $15,000 13,500- 45-degree line (billions of dollars) 12,000 AE 10,500- 9,000 7,500 6,000 4,500 3,000 1,500 0 $3,000 6,000 9,000 12,000 15,000 Real GDP (Y) per year (billions of dollars) a, rise b. remain unchanged c. fall, but only if there is an offsetting change in autonomous consumption d. fall A Moving to the next question prevents changes to this answer. Question 6 of 25

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter17: Production And Growth

Section: Chapter Questions

Problem 5CQQ

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11:04 AM ECON 122 CAT ONE.docX Phoenix Files QUESTION ONE Is it desirable for a country to have a large gross domestic product? Explain (2 marks) QUESTION TWO You are given data on the following variables in an economy Government spending 300 Planned investment Net exports Autonomous taxes Income tax rate Marginal propensity to consume 0.5 a) Consumption (C) is 600 when income (Y) is equal to 1500. Solve for autonom ous consumption (2 ma rks) ii) 200 S 50 b) Solve for the equilibrium level of output in the following two scenarios: i) There is an income tax t=0.1, Edit 0.1 250 Q Search © | 46| 472 [ 66 c) In the economy with an income tax of 10%, what is the budget balance of the government? (2 marks) O X: × There is no income tax in the economy. Denote these two variables by Yw and YN respectively. (4 marks) d) Solve for the change in net exports that would bring the equilibrium output lev el in the economy with the income tax to the level of YN that you found in part b. specify both…
ingr Income (GDP = DI) $480 520 560 600 640 680 720 760 800 Consumption 512 536 560 504 608 632 b. If the MPC is 0.75? 656 680 704 Saving $-32 -16 0 16 32 48 64 80 96 What is the value of the marginal propensity to consume? APC Instructions: Round your answer to the nearest whole number. Change in GDP = billion. 1.067 0.990 0.880 APS -0.067 0.027 a. By how much will GDP change if firms increase their investment by $9 billion and the MPC is 0.9? Instructions: Round your answer to the nearest whole number. Change in GDP- 9 billion. 0.120
D7
The gross domestic product (GDP) of Country A is $2 trillion in year 1. What value of investment will increase its GDP to $4.5trillion in year 2? (present your result in the nearest billion dollars, i.e., no decimal places) Assume that the average disposable income and consumption (in real $) of this country's citizen are provided in the table below. Year Income Consumption 1 60,000 50,000 64,726 51,259
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16. Find consumption expenditure from the following National Income =Rs. 5000 Autonomous Consumption = Rs. 1000 Marginal Propensity to Consume = 0.8 %3D