Refer to problem 1. The AE function is equal toO AE =10400+0.8YO AE= 11200+0.8YdO AE= 7800+0.8YO A and B are correct Problem 1Given the following data for a closed economyI= 3400 Planned InvestmentG=4000 Government SpendingC= 3,800 + 0.8 Yd Consumption functionT= 1000 Taxes

The aggregate expenditure represents the current market value of all the final goods and services…

Answered: Refer to problem 1. The AE function is…

Refer to problem 1. The AE function is equal to * O AE =10400+0.8Y O AE= 11200+0.8Yd O AE= 7800+0.8Y O A and B are correct

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter32: The Land Market And Natural Resources

Section: Chapter Questions

Problem 10E

See similar textbooks

Similar questions

Output/Income Consumption Savings MPC MPS APC APS 0 80 0-80 = -80 - - - - 100 140 100-140 = -40 0.6 0.4 1.4 -0.4 200 200 200-200=0 0.6 0.4 1 0 300 260 300-260=40 0.6 0.4 0.8666666667 0.1333333333 400 320 400-320=80 0.6 0.4 0.8 0.2 a. Assume Y= 400 Calculate the level of Consumption Hint: plug in 400 for Y into the Consumption and Savings equations, Also, calculate the following APC (C/Y); APS (S/Y) b. Calculate the Multiplier 1/(1-MPC) c. Assume Y= C + I + G + X I=20; G=30 X=0 Use the equation derived in (d) above; use this to Plug in the value of C into the equation. I=Busines Investments G= Government Spending X=Net exports
Fill in the blanks in the following table. Assume for simplicity that taxes are zero. Also assume that the values represent billions of 2012 dollars. (Round your responses to the nearest whole number.) Saving (5) Real GDP (Y) $800 $900 $1,000 $1,100 $1,200 Consumption (C) $640 $720 $800 $880 $960
Given the following income, spending, and savings data, please answer parts a-g below : Disposable Income (DI) Consumption (C) Savings (S) $ 0 $. 40000 _________ $100000 $100000 _________ $200000 $160000 _________ $300000 $220000 _________ $400000 $280000 _________ a. Solve for savings at each level of disposable income (DI). b. Solve for the marginal propensity to consume (MPC) and the marginal propensity to save (MPS) between each disposable income level. c. Solve for the average propensity to consumer (APC) and the average propensity to save (APS) at each level of disposable income. d. State the numerical value for the break-even level of disposable income in this example. e. State the numerical value for the autonomous consumption in this example. f. Using the data from the table, graph the consumption line. g. Using the data from the table, graph the savings line. Give me answer part: A ,B ,C
if Government Spending (G) is $200 million, Tax Revenue (T) is $260 millio Consumption is $300 million, and GDP P(Y) is 780 millionPrivate saving is
What is the value of the sensitivity money demand to the level of income? O a. 25 O b. 0.50 O c. 50 O d. 0.65 What is the value of the nominal supply? O a. 500 O b. 1000 O c. 1000/2 O d. 2 Which of the following is an expression representing the IS curve O a. 0.65Y = 2325 - 50i O b. 0.65Y = 2325 + 50i O c. 0.50Y = 500 + 25i O d. 0.35Y = 2325 - 50i
a) The consumption function of UAE ix C100+0.5Y. The Private business sector has made on investmentof 100 million dirham to expand their business. How much national income will change in the UAE economy? Assume there is no government or foreign sector.
Explain the economic circumstances in which you think the benefits of increased infrastructure spending would outweigh the costs?
Refer to the information provided in Table below to answer the question. Aggregate Income ($ billions)| Aggregate Saving ($ billion) 4100 -85 -70 150 300 450 -55 600 40 Refer to Table Society's MPS is Select one: a. 0.9. b. 0.1. C. 0.2.
This question is based on the following diagram: Z 800 0 10,8 (4/5) 1 4000 YF= 6000 N Y By how much must government spending increase to reach full employment? Select one: ○ A. 400 OB. 4000 ○ C. 2500 O D. 2000
Please help me!! Qx=1.0-2.0Px+1.5I+0.8Py-3.0Pm+1.0A Where Qx= sales of CFC cornflakes, in millions of 10-ounce boxex per year Px= the price of CFC cornflakes, in dollars per 10-ounce box I= personal disposable income, in trillions of dollars per year Py= price of competitive brand of cornflakes, in dollars per 10-ounce box Pm= price of milk, in dollars per quart A= adveritising expenditures of CFC cornflakes,in hundreds of thousands of dollars per year This year, Px=$2, I=$4, Py=$2.50 , Pm=$1, A=$2 Questions c) Estimate the level of sales next year if CFC reduces Px by 10 percent and increases advertising by 20 percent, Income rises by 5 percent, Py is reduced by 10 percent, and Pm remains unchanged. (d) By how much should CFC change its adveritsing if it wants its sales to be 30 percent higher than this year?
None
Consicber an economy C=1000 I=50O G=y00 T=1O mpc=0.5 What is the savings function of this ecomemy?